NXP Semiconductors makes chips for emerging applications such as the Internet of Things and self-driving cars. It doesn't emphasize it yet, but its chips will likely also be used in the hottest emerging market, artificial intelligence systems. On Wednesday, the Relative Strength (RS) Rating for NXP stock popped above a key benchmark, rising from 76 to 81.
That upgraded 81 Relative Strength Rating puts NXP Stock among the top 19% of companies for price acceleration this past year. It also denotes its entry into an exclusive stock group. Market research has shown that the market's biggest winners often have an 80 or better RS Rating in the early stages of their moves.
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NXP Stock In A Buy Zone
NXP stock is still inside a buying range after breaking out past a 197.71 buy point in a cup without handle. The proper buying range is up to 5% above the initial entry. Once a stock hits that benchmark, it's best to wait for it to set up another buying opportunity. NXP closed at 195.64 Wednesday, down fractionally for the day.
NXP makes mixed signal chips (analog and digital on one chip), analog chip, radio frequency chips and power management chips.
Earnings growth rose last quarter from 23% the prior quarter to 29%, or $3.19 per share. Sales were flat with the same quarter last year at $3.12 billion.
Among Top 6 In Chips Group
NXP stock earns the No. 6 rank among its peers in the 30-stock Electronics-Semiconductor Manufacturing industry group. STMicroelectronics and Analog Devices are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating measures technical performance by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
