nLIGHT saw an improvement in its IBD SmartSelect Composite Rating Monday, from 83 to 96.
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The new score indicates the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they start a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
nLIGHT is currently extended beyond a proper buy zone after clearing the 12.98 buy point in a cup with handle.
One weak spot is the company's 71 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, such as mutual funds and pension funds, over the last 13 weeks.
In Q2, the company reported 0% earnings growth. Top line growth increased 22%, up from 16% in the prior report. That marks two quarters of rising growth.
nLIGHT holds the No. 6 rank among its peers in the Electronics-Parts industry group. Amphenol Cl A, Bel Fuse A and Bel Fuse Cl B are among the top 5 highly-rated stocks within the group.
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