Alpha & Omega Semiconductor saw its IBD SmartSelect Composite Rating jump to 96 Wednesday, up from 94 the day before.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The market's biggest winners often have a 95 or higher rating in the early stages of a new price run, so that's a good starting point when looking for the best stocks to buy and watch.
Alpha & Omega Semiconductor stock is currently forming a cup with handle, with a 59.48 entry. Today it gapped up at the open and might offer an early entry point. Keep in mind that it's a later-stage base, which makes it a riskier entry point.
Look for the stock to continue the break out in heavy trade at least 40% higher than normal.
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The stock sports a 97 EPS Rating, which means its recent quarterly and annual earnings growth tops 97% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
Earnings Update
In Q2, the company reported 85% earnings-per-share growth. Sales growth fell to 22%, down from 23% in the previous quarter.
Alpha & Omega Semiconductor holds the No. 1 rank among its peers in the Electronics-Semiconductor Fabless industry group. Rambus and Broadcom are also among the group's highest-rated stocks.
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