Computer chips remain in short supply and the sector has been battered by clogged supply chains and Russia's war on Ukraine. Still, on Tuesday a small but fast-growing chipmaker, Monolithic Power Systems, earned a lift to its stock Relative Strength (RS) Rating, to 77, up from 62 the day before.
The new 77 RS Rating means that Monolithic Power stock has topped 77% of all stocks, regardless of industry, in terms of price performance over the past year. The market's biggest winners tend to have an 80 or higher RS Rating as they begin their largest price moves. See if Monolithic Power Systems can continue to rebound and hit that benchmark.
Monolithic Power Stock Other Ratings Strong
Monolithic Power stock also earns an excellent 96 EPS Rating, of a best-possible 99. The strong rating reflects healthy profit growth in recent quarters as well as long-term. It has an 86 Composite Rating and an A SMR Rating (sales+profit margins+return on equity), on an A to E scale with A tops. One yellow flag is its D- Accumulation/Distribution Rating, indicating more selling than buying by institutional investors like mutual funds.
Monolithic Power Systems saw both earnings and sales growth rise last quarter. Earnings-per-share jumped 62% to $2.12 on a 44% surge in revenue to $336.5 million. The company is slated to report first quarter earnings results on May 2 after the market close.
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Monolithic Power stock has risen four of the past six trading sessions. However, it's not yet showing a potential buy point. See if the stock goes on to form a chart pattern that could spark a new run.
Monolithic Power stock earns the No. 5 rank among its peers in the Electronics-Semiconductor Fabless industry group. Rambus and Alpha & Omega Semiconductor are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique rating measures price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
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