Rambus saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, rising from 80 to 85.
This unique rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
History shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 as they begin their biggest price moves.
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Rambus is within a buy range after moving past a 60.84 buy point in a flat base. The proper buying range is up to 5% above the initial entry. Once a stock moves above that range, it's best to hold off investing and wait for it to set up another buying opportunity.
The company saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 35% to 125%. Revenue rose from 10% to 38%. The company is expected to report its latest numbers on or around Feb. 3.
The company earns the No. 1 rank among its peers in the Electronics-Semiconductor Fabless industry group. NVIDIA and Rambus are also among the group's highest-rated stocks.
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