Shares of chipmaker Cirrus Logic dipped along with most other chipmakers during the January market consolidation. It's held up better than most though. And Tuesday afternoon Cirrus Logic stock climbed nearly 3% amid continued strong profit and sales growth.
Austin, Texas-based Cirrus Logic was a pioneer in mixed-signal chips, semiconductors that combine both analog and digital circuits on a single chip. Specifically, it's a leader in audio devices. Its chips are found in headsets, speakers, mobile audio devices, smartphones and smart wearables, among other devices.
Cirrus Logic Stock Bounces Off 10-Week Line
Cirrus Logic stock rebounded solidly off its 10-week line Tuesday though it's still below it's ascending 50-day.
Among its key ratings, Cirrus Logic stock has a hefty 89 Composite Rating of a best-possible 99, just a jot below the ideal that CAN SLIM investors like to see.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
Cirrus Logic's 70 EPS Rating reflects strong recent profit growth but also weakness last year in the midst of pandemic shutdowns. Bullishly, it carries a B- Accumulation/Distribution Rating, on an A+ to E scale. The B- rating shows that institutional investors are fairly heavy buyers of its stock.
Fundamentals Improving
In terms of revenue and profits, Cirrus Logic has posted rising EPS growth in each of the last two reports. Revenue growth has also increased over the same time frame. Last quarter, EPS rose 19% to $2.54 on a 13% hike in revenue to $548.4 million.
Looking For The Best Stocks To Buy And Watch? Start Here
Cirrus Logic stock broke out earlier, but is now well below the prior 95.10 entry from a cup with handle. If a stock you're watching climbs above a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new consolidation and break out. Also keep in mind that the latest pattern is a later-stage base, and those involve more risk.
Cirrus Logic stock holds the No. 11 rank among its peers in the Electronics-Semiconductor Fabless industry group. Alpha & Omega Semiconductor and Marvell Technology are among the group's highest-rated stocks.
