Tech stocks have been out of favor during the market retreat the past couple of months. One tech that's performed better than the pack is Synopsys, the top-ranked company in its industry group and a stock worth watching. On Thursday, the Relative Strength (RS) Rating for the software maker climbed to 84, up from 80 a day earlier.
Synopsys makes the software that semiconductor makers use to make chips. It's long been a leader in that segment. The new 84 RS Rating shows that Synopsys stock has outperformed 84% of all companies, regardless of industry group, in terms of stock price performance over the past year. Market history reveals that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating in the early stages of their moves.
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Synopsys stock also has an outstanding 97 EPS Rating of a best-possible 99. Its 92 IBD Composite Rating is another insignia of market leadership. And its B- Accumulation/Distribution Rating shows that large institutional investors like mutual funds and ETFs are buying more shares than selling.
Regarding its fundamentals, Mountain View, Calif.-based Synopsys reported 47% earnings growth in its latest quarterly report, to $2.50 per share, on a 25% rise in revenue to $1.28 billion.
Synopsys stock is working on a consolidation with a 377.70 buy point. See if the stock can break out in heavy trade. On Thursday, it was up about 3% in afternoon trading, at just over 307. It was on track for its fifth higher close in the last six trading sessions
Synopsys stock earns the No. 1 rank among its peers in the Computer Software-Design industry group. Cadence Design Systems and PTC are the No. 2 and No. 3 companies in the group, respectively.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary Relative Strength Rating measures market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of the other stocks in our database.
