For a while there, Advanced Micro Devices was THE chip company to buy and watch. Shares of the microprocessor maker soared 230% from Nov. 22, 2019, to a 164.46 intraday high in early December 2021. Like other chipmakers it took a beating last year but it's staging a comeback. On Monday, the Relative Strength (RS) Rating for AMD stock jumped into a higher percentile, as it got a lift from 67 to 71.
AMD Stock Closing In On Growth Benchmark
The raised 71 RS Rating means that AMD stock is outperforming more than 70% of all stocks on price performance. It's closing on the benchmark 80 RS Rating that CAN SLIM investors look for when searching for the best stocks to buy and watch.
AMD sells microprocessors and graphics chipsets to server and PC makers, among others.
Among other key ratings, the Santa Clara, Calif.-based company has a respectable 80 Earnings Per Share Rating and a bullish 93 Composite Rating. The 93 Composite putting it in the top 7% of stocks for a combination rating for the other five key IBD ratings.
Additionally, it sports an excellent A Accumulation/Distribution Rating on an A+ to E scale. The A rating shows that institutional investors like insurance funds and mutual funds are aggressive buyers of its stock.
During the 2022 bear market AMD stock fell to 54.57 on Oct. 13. It's since risen sharply and traded at 82.70, up fractionally Monday afternoon. Advanced Micro Devices is building a flat base with an 89.04 entry. See if it can break out in volume at least 40% above average.
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Sales Growth Strong, Earnings On Watch
Advanced Micro Devices posted a 25% year-over-year drop in EPS to 69 cents per share last quarter. The prior three stanzas it reported 117% EPS growth, 67% growth and then an 8% drop. Look for a return to earnings growth for the current quarter. Revenue growth has stayed positive. Revenue last quarter grew 16% to $5.599 billion. The three quarters before that sales grew 71%, 70% and then 29%.
AMD stock earns the No. 10 rank among its peers in the Electronics-Semiconductor Fabless industry group. Memory-chip maker Rambus and communications chipmaker Broadcom are among the group's highest-rated stocks.
The exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
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