Top-ranked Monolithic Power Systems has risen above both its 50-day and 10-week averages as it rebounds from the market sell-off in January. On Friday the leading chipmaker's Relative Strength (RS) Rating shot up 20 points to 83, putting it in an elite group.
The new 83 RS Rating means that Monolithic Power stock has outperformed 83% of all stocks over the past year. Market research shows that the best stocks tend to have an RS Rating of over 80 in the early stages of their moves. Additionally, on Thursday, Monolithic Power stock was added to the IBD Sector Leaders Screen.
Near Best Composite For Monolithic Power Stock
Monolithic Power Systems makes both analog and digital chips, used in LED lighting systems, autos, consumer electronics and other applications.
Among other key ratings, Monolithic Power stock also has an excellent 98 IBD Composite Rating of a best-possible 99. The Washington, Neb.-based company carries a 96 EPS Rating. And, bullishly, it has an A Accumulation/Distribution Rating on an A+ to E scale, indicating that institutional investors have been loading up on its stock over the past 13 weeks.
Top and bottom line growth moved higher on a year-over-year basis last quarter. Earnings were up 62%, to $2.12 per share. Revenue grew 44% to $336.5 million.
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Monolithic Power stock, which is on both the IBD 50 and IBD Sector Leaders screens, is now considered extended and out of buy range after clearing a 406.85 buy point in a second-stage consolidation. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Other Highly Ranked Chipmakers
Monolithic Power stock holds the No. 1 rank or No. 2 rank among its peers in the Electronics-Semiconductor Fabless industry group, depending on the gauge used. Alpha & Omega Semiconductor and MaxLinear are also among the top five ranked stocks in the group.
When you're researching the best stocks to buy and watch, relative stock price strength is a key indicator.
IBD's unique Relative Strength Rating tracks share price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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