The IBD SmartSelect Composite Rating for Semtech increased from 93 to 96 Tuesday.
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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.
Semtech is not currently near a proper buy zone. Look for the stock to form and break out of a new base.
One weak spot is the company's 73 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.
The company reported 533% earnings-per-share growth for Q1. Top line growth came in at 22%, down from 30% in the previous quarter.
Semtech holds the No. 9 rank among its peers in the Electronics-Semiconductor Fabless industry group. Astera Labs, Advanced Micro Devices and Arm Holdings ADR 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.
