One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Arm Holdings just hit that mark, with a jump from 80 to 83 Friday.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength. See a deeper look into the company from a recent New America column in IBD Weekly.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research reveals that the top-performing stocks often have an RS Rating of at least 80 as they begin their biggest climbs.
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The stock, which is on theIPO Leaders list, is still inside a buy range after breaking past a 69.00 buy point in a cup without handle according to the weekly chart on MarketSmith. Once a stock moves 5% or higher beyond the initial entry, it's considered extended and out of buy range.
The stock's relative strength line is in new high ground, which is a bullish indicator of technical strength.
ADM Earnings
Taking a look at top and bottom line numbers, Arm Holdings ADR has posted two quarters of increasing earnings growth. Revenue growth has also moved higher during the same period.
Arm Holdings ADR holds the No. 2 rank among its peers in the Electronics-Semiconductor Fabless industry group. Advanced Micro Devices is also among the group's highest-rated stocks.
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