One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Applied Materials stock just hit that mark, with a jump from 80 to 83 Wednesday.
IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows that the market's biggest winners typically have an RS Rating north of 80 in the early stages of their moves.
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Is Applied Materials Stock A Buy?
Applied Materials stock recently reclaimed its 50- and 200-day moving averages. While the chip stock is not near a proper entry right now, see if it manages to form and break out of a proper base.
The chip equipment maker posted 5% EPS growth last quarter, while sales growth came in at 0%. Keep an eye out for the company's next round of numbers on or around Aug. 15.
Applied Materials stock earns the No. 5 rank among its peers in the Electronics-Semiconductor Equipment industry group. Nova is the No. 1-ranked stock within the group.
