On Wednesday, Monolithic Power Systems received an upgrade to its Relative Strength (RS) Rating, from 76 to 83.
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IBD's unique rating measures price performance 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.
History shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 as they begin their biggest price moves.
Monolithic Power Systems broke out earlier, but has fallen back below the prior 755.00 entry from a cup without handle. In the scenario 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 take shape. Also understand that the most recent consolidation is a later-stage base, and such bases are more prone to failure.
In terms of top and bottom line numbers, the company has posted rising EPS growth in each of the last seven reports. Revenue gains have also moved higher during the same period. Monolithic Power Systems is expected to report its next quarterly numbers on or around Aug. 4.
The company holds the No. 3 rank among its peers in the Electronics-Semiconductor Fabless industry group. Broadcom is the No. 1-ranked stock 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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