When building your watch list, focus on stocks with an 80 or higher RS Rating. Advanced Micro Devices just cleared that benchmark with an upgrade from 76 to 82.
This unique 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.
History shows that the top-performing stocks often have an RS Rating of over 80 as they begin their biggest price moves.
Hone Your Stock-Picking Skills By Focusing On These Factors
Advanced Micro Devices is now considered extended and out of buy range after clearing a 125.72 buy point in a second-stage cup with handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
In terms of top and bottom line numbers, Advanced Micro Devices has posted two quarters of rising earnings growth. Sales gains have also risen over the same time frame.
Advanced Micro Devices earns the No. 8 rank among its peers in the Electronics-Semiconductor Fabless industry group. Broadcom, NVIDIA and Impinj are among the top 5 highly rated stocks within the group.
RELATED:
Chip Stocks To Watch And Semiconductor Industry News
IBD Stock Rating Upgrades: Rising Relative Strength
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
