Microchip Technology is a standout in the computer chip group. It rank No. 2 out of 32 stocks in the group. On Thursday, Microchip stock saw its Relative Strength (RS) Rating climb from 68 to 72.
The 72 RS Rating puts Microchip stock in the top 28% for price performance this past year. It's a good-but-yet-not-great rating that reflects weakness in the chip sector more than for Microchip. Chandler, Ariz.-based memory-chip maker Microchip is a "Steady Eddie" type company whose other ratings are outstanding.
Microchip Stock Among Top 12% Overall
Microchip boasts a 93 Earnings Per Share Rating out of 99, reflecting double-digit profit growth over the past four quarters. It carries an 88 Composite Rating, a gauge of overall strength that combines five other fundamental and technical ratings. Its A- Accumulation/Distribution Rating, on an A+ to E scale, shows that it's highly sought after by big money funds like ETFs and mutual funds.
Microchip Technology is building a cup with handle with an 85.13 entry. See if the stock can break out in volume at least 40% above average. On Nov. 1 Microchip stock dropped to 68.75 as the recent correction was ending. The chipmaker closed Thursday at 83.44, up about 0.6% for the day.
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Microchip Technology has recorded double-digit growth for both sales and profits over the past four quarters. It showed 11% earnings growth in the latest quarterly report, to $1.62 per share, while sales grew 9% to $2.254 billion.
Highly Ranked In Chip Group
Microchip stock earns the No. 2 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. Netherlands-based NXP Semiconductors is No. 1 in the group. The group itself is just starting to perk up after a slump. It ranks a weak No. 150 on IBD's list of 197 industry groups.
When researching the best stocks to buy and watch, a stock's relative price strength vs. other stocks is a good tell.
IBD's Relative Strength Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks compares to other publicly traded companies
