Silicon Motion Technology Stock Clears Technical Benchmark, Hitting 90-Plus RS Rating
Silicon Motion Technology stock saw a welcome improvement to its Relative Strength (RS) Rating on Friday, with an upgrade from 87 to 95.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength. This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history shows that the top-performing stocks tend to have an 80 or higher RS Rating at the beginning of a new run.
Is Silicon Motion Technology Stock A Buy?
The IBD 50 stock broke out earlier, but is now trading approximately 4% below the prior 96.99 entry from a cup without handle. In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form. Also keep in mind that the latest consolidation is a later-stage base, and such bases are more prone to failure. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The computer data storage firm reported 55% earnings growth in its most recent report, while sales growth came in at 33%.
Silicon Motion Technology stock holds the No. 1 rank among its peers in the Computer Software-Storage industry group. Pure Storage and Western Digital are also among the group's highest-rated stocks.