One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Texas Instruments cleared that benchmark Thursday, with a jump from 78 to 82 Thursday.
IBD's unique RS Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the best-performing stocks typically have an 80 or better RS Rating as they launch their biggest runs.
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Texas Instruments is trading within a buy zone after clearing a 214.66 buy point in a flat base. The proper buying range extends to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity.
Although earnings and sales growth came in at -21% and -8%, respectively, in the latest report, that means earnings have have shown improvement for two straight reports and the top line has risen for one.
The company holds the No. 5 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. Taiwan Semiconductor ADR is the top-ranked stock within the group.
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