On Tuesday, Coherent reached an important technical milestone, with its Relative Strength (RS) Rating rising into the 90-plus percentile with an improvement to 94, an increase from 90 the day before.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against other publicly traded companies.
History shows that the top-performing stocks tend to have an 80 or higher RS Rating in the early stages of their moves.
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Coherent has climbed more than 5% past a 42.14 entry in a first-stage cup with handle, meaning it's now out of a proper buy zone. Look for the stock to create a new buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line. For example, today it opened higher but has fallen back since then. Still well above an reliable entry point, however, as it is currently about 30% above the Pivot price.
Coherent reported -39% EPS growth last quarter, while sales growth came in at 50%.
Coherent holds the No. 4 rank among its peers in the Electronics-Parts industry group. Bel Fuse A and Bel Fuse B are among the top 5 highly rated stocks within the group.
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