Chipmaker Cirrus Logic aims to make beautiful music for you. On Monday the Relative Strength (RS) Rating for Cirrus Logic stock got an upgrade from 69 to 73.
The Relative Strength Rating upgrade is significant. Market research shows that stocks that go on to make the biggest gains often have a Relative Strength Rating above 80. Austin, Texas-based Cirrus Logic stock is within striking distance of that benchmark.
Cirrus Logic Stock Ratings Shine
Among its other ratings Cirrus Logic stock has a healthy 88 Composite Rating out of 99. Its strong 90 Earnings Per Share Rating is due in large part to strong profit growth in past years and the flip to growth last quarter.
The audio-systems-chip maker gets a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale, reflecting strong fundamentals. And its B Accumulation/Distribution Rating shows fairly heavy buying by pension funds, mutual funds and other institutional investors.
Cirrus Logic make analog and mixed-signal chips and has long been a leading supplier to audio systems makers for home and auto entertainment systems, headphones and other electronic devices.
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Fundamentals Improved Over Three Quarters
In terms of fundamentals, the company has posted rising EPS growth in each of the last three reports. Top line growth has also risen over the same time frame, lifting Cirrus Logic stock since last October.
Cirrus Logic stock struggled last year as sales and profit growth slowed amid a semiconductor market pullback. The company turned a corner at the end of the year, posting a 20% hike in earnings to $2.89 per share on a 5% rise in revenue to $619 million.
Cirrus Logic stock is building a cup with handle with a 95.87 entry. See if the stock can break out in volume at least 40% higher than normal. It closed down Monday at 92.16.
Cirrus Logic stock holds the No. 11 rank among its peers in the 38-stock Electronics-Semiconductor Fabless industry group. Advanced Micro Devices, Arm Holdings and Nvidia are among the top 5 highly rated stocks in the group. The group itself owns an outstanding A Group Relative Strength Rating.
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