Applied Materials saw a positive improvement to its Relative Strength (RS) Rating on Wednesday before the open, with an increase from 70 to 75. After today's big move up, it now stands at 82.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. See if Applied Materials can continue to rebound and clear that threshold.
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Applied Materials was trying to complete a cup without handle with a 116.19 entry. With today's market move it cleared that hurdle. It now sits 3% above the pivot, still within the buying range. Keep in mind that earnings are due in about 15 days. Buying ahead of earnings can be risky.
Earnings Update
The company saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 2% to 5%. Revenue rose from 5% to 10%. The next quarterly numbers are expected on or around Feb. 16.
The company earns the No. 10 rank among its peers in the Electronics-Semiconductor Equipment industry group. Aehr Test Systems and ASML Holding are also among the group's highest-rated stocks.
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