When considering what names to put on your watch list, focus on stocks with an 80 or higher RS Rating. Tower Semiconductor just met that criteria with a new score of 85.
IBD's unique rating identifies price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
Decades of market research reveals that the top-performing stocks typically have an RS Rating of above 80 as they begin their biggest runs.
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Tower Semiconductor is now considered extended and out of buy range after clearing a 34.74 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.
In terms of fundamentals, the company has posted four quarters of accelerating earnings growth. Sales growth has also moved higher during the same period.
The company earns the No. 3 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. Taiwan Semiconductor ADR is the No. 1-ranked stock within the group.
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