In a welcome move, Cohu saw its Relative Strength Rating rise from 70 to 75 on Wednesday.

When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.

This proprietary rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks compares to the rest of the market.

History reveals that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they launch their largest climbs. See if Cohu can continue to rebound and hit that benchmark.

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Cohu is now considered extended and out of buy range after clearing a 20.18 buy point in a first-stage consolidation. See if the stock forms a new chart pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.

Earnings growth slowed last quarter from 8,800% to 424%. But sales moved higher, from 62% to 70%.

The company holds the No. 13 rank among its peers in the Electronics-Semiconductor Equipment industry group. ASML Hldgs and KLA Tencor are also among the group's highest-rated stocks.