On Monday, Arm Holdings ADR got an upgrade for its IBD SmartSelect Composite Rating from 93 to 97. Other key ratings still have room to grow, however, so read on.
The revised score means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Arm Holdings ADR broke out earlier, but is now about 1% below the prior 69.00 entry from a cup without handle. on a MarketSmith weekly chart. If a stock you're tracking climbs above a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout.
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One weak spot is the company's 66 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors over the last 13 weeks.
ARM Earnings
In Q2, the company reported 118% EPS growth. That means it's now posted two straight quarters of rising EPS growth. Top line growth increased 28%, up from -2% in the prior report. The company has now posted rising growth in each of the last two quarters.
Arm Holdings ADR earns the No. 2 rank among its peers in the Electronics-Semiconductor Fabless industry group. NVIDIA is the top-ranked stock within the group.
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