Arm Holdings ADR saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 94 to 96.
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The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. 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 -3% below the prior 164.16 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form.
The stock earns a 99 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth tops 99% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q4, the company posted 53% EPS growth. That means it's now posted two straight quarters of rising EPS growth. Sales growth climbed 34%, up from 19% in the prior report. The company has now posted increasing growth in each of the last two quarters. The company's next quarterly report is expected on or around Jul. 30.
Arm Holdings ADR holds the No. 6 rank among its peers in the Electronics-Semiconductor Fabless industry group. Credo Tech Group, Advanced Micro Devices and Broadcom are among the top 5 highly-rated stocks within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
