Frequency Electronics 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 grade in the early stages of a new price run, so that's an important benchmark to look for when looking for the best stocks to buy and watch.
Frequency Electronics is currently extended beyond a proper buy zone after clearing the 14.32 buy point in a cup with handle. Keep in mind that it's a thinly traded stock, with average daily dollar volume under $8 million.
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One weak spot is the company's 71 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q2, the company reported 250% EPS growth. Sales growth fell to 16%, down from 22% in the prior quarter.
Frequency Electronics holds the No. 1 rank among its peers in the Telecom-Cable/Satellite Equipment industry group. Telesat Cl A and Belden are also among the group's highest-rated stocks.
