Synopsys makes software that's at the heart of the chipmaking process. Chips, and Synopsys, are in the spotlight right now amid a shortage. On Tuesday, the Relative Strength (RS) Rating for Synopsys hit 75, climbing 10 points from 65 the day before. Synopsys stock rose 2.7% Tuesday afternoon, to 305.04.
The new 75 RS Rating puts Synopsys stock within a few points of the top tier group of growth stocks. Market research shows that the best stocks tend to have an RS Rating above 80 as they launch their biggest climbs. See if Mountain View, Calif.-based Synopsys can continue to show renewed price strength and clear that threshold.
Synopsys Stock's Other Ratings Shine
Among its other key ratings, watchlist candidate Synopsys boasts a 93 EPS Rating, out of 99. Its 89 Composite Rating puts it in the top 12% of stocks on a group of key metrics. Ideally though, CAN SLIM investors like to see the Composite top 90.
In terms of fundamentals, the company has posted two quarters of increasing earnings growth. Revenue gains have also moved higher over the same time frame. EPS rose 58% to $2.40 last quarter on a 31% increase in revenue to $1.27 billion. Synopsys is expected to report its next quarterly numbers on or around May 19.
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Synopsys is building a consolidation with a 377.70 buy point. See if the stock can break out in heavy trading.
Synopsys stock earns the No. 1 rank among its peers in the Computer Software-Design industry group. Cadence Design Systems and PDF Solutions are in the No. 2 and 3 spots, respectively.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily identifies share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
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