One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Monolithic Power Systems just hit that mark, with a jump from 74 to 82 Monday.
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IBD's proprietary RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the best-performing stocks tend to have an RS Rating north of 80 as they launch their biggest runs.
Monolithic Power Systems is in a buying range after moving past a 755.00 entry in a cup without handle. Once a stock moves 5% or higher beyond the initial entry, it's considered extended and out of buy range.
In terms of fundamentals, Monolithic Power Systems has posted rising EPS growth over the last seven quarters. Sales growth has also moved higher during the same period. The company is expected to release its next quarterly numbers on or around Aug. 4.
Monolithic Power Systems earns the No. 2 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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