When considering what names to put on your watch list, focus on stocks with an 80 or higher RS Rating. Lumentum Holdings is one stock that just reached the mark, now earning a score of 89.
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This proprietary rating tracks market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they begin their biggest climbs.
Lumentum Holdings has climbed more than 5% past a 60.99 entry in a first-stage consolidation, meaning it's now out of a proper buy range. Look for the stock to create a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week line.
In terms of fundamental health, Lumentum Holdings has posted two quarters of increasing earnings growth. Revenue gains have also risen during the same period.
The company earns the No. 1 rank among its peers in the Telecom-Fiber Optics industry group. Clearfield and Ciena are also among the group's highest-rated stocks.
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.
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