On Tuesday, Ambarella hit a key performance benchmark, with its Relative Strength (RS) Rating climbing into the 90-plus percentile with an upgrade to 91, an increase from 88 the day before.
IBD's proprietary RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against all other stocks in our database.
Over 100 years of market history shows that the best stocks typically have an RS Rating of at least 80 as they launch their largest price moves.
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Ambarella has risen more than 5% past a 65.88 entry in a first-stage consolidation, meaning it's now out of a proper buy zone. Look for the stock to create a new chance to pick up shares like a three-weeks tight or pullback to the 50-day or 10-week line.
The company reported 0% earnings growth last quarter. Revenue increased 63%.
The company earns the No. 8 rank among its peers in the Electronics-Semiconductor Fabless industry group. Broadcom, Rambus and SiTime are among the top 5 highly rated stocks within the group.
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