Chipmaker Monolithic Power Systems has a top-notch 95 EPS Rating as the chip shortage continues to lift semiconductor stocks. Monolithic stock rose about 1% to 406.34 Tuesday. The company plans to report fourth quarter and full year results after the market close on Feb. 10.
The 95 EPS Rating, out of a best-possible 99, means that Monolithic Power Systems' earnings growth has outperformed 95% of all stocks. IBD's EPS Rating compares a company's earnings on both a current and annual basis with all other publicly traded companies.
Monolithic Stock Rebounding
Like most stocks it was battered by the January market correction. And Monolithic's stock has been in a lull since the end of November in sync with a drop in the S&P during that time. But the Washington, Neb.-based company has held up better than most and its stock has risen more than 10% since Friday amid the renewed stock market rally.
Monolithic makes analog and mixed signal chips used in LED lighting systems and other consumer, auto and industrial devices and systems.
Among other key ratings, Monolithic stock has a good but not great 85 Composite Rating. Top-performing stocks tend to have a 95 or better grade as they kick off a significant move. See if Monolithic can rise above that benchmark.
Its SMR Rating (sales+profit margins+return on equity) is a best-possible A on an A to E scale. However, like many other stocks, its Accumulation/Distribution Rating is just C- on an A+ to E scale, indicating about as many institutional investors are selling as buying.
Consistent Double Digit Profit, Sales Growth
Monolithic Power reported earnings per share growth of 26%, 54% 68% and 22% over the past four quarters. Sales rose 40%, 53%, 58% and 25% during that period.
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After it's long slump, Monolithic stock is not in buy range yet, although it earlier set a 406.85 entry in a consolidation and it's trading just above that again. Its stock rose 2.7% Friday, 8.6% Monday and 0.9% Tuesday.
Monolithic stock holds the No. 10 rank among its peers in the 31-member Electronics-Semiconductor Fabless industry group. Advanced Micro Devices, Alpha & Omega Semiconductor and Marvell Technology are among the top 5 highly-rated stocks within the group.
