Applied Optoelectronics saw a welcome improvement to its Relative Strength (RS) Rating on Friday, rising from 89 to 92.
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IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matches up against all other stocks in our database.
History reveals that the best stocks tend to have an 80 or better RS Rating in the early stages of their moves.
Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock is able to form a consolidation and break out.
The company reported 0% earnings growth in the latest quarterly report, while sales growth came in at 138%.
Applied Optoelectronics earns the No. 6 rank among its peers in the Telecom-Fiber Optics industry group. Lumentum Holdings, Viavi Solutions and Ciena 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.
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