Stocks With Rising Relative Strength: KLA Tencor

Shutterstock photo

The Relative Strength ( RS ) Rating for KLA Tencor ( KLAC ) moved up into a higher percentile Wednesday, as it got a lift from 68 to 72.

[ibd-display-video id=2385970 width=50 float=left autostart=true] IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks compares to other publicly traded companies.

Decades of market research reveals that the market's biggest winners often have an RS Rating of above 80 in the early stages of their moves. See if KLA Tencor can continue to rebound and clear that threshold.

Looking For Winning Stocks? Try This Simple Routine

KLA Tencor broke out earlier, but is now trading around 4% below the prior 110.10 entry from a flat base . In the case where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to take shape. Also understand that the latest pattern is a later-stage base, and such bases are more prone to failure.

Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 55%, compared to -7% in the prior report. Revenue increased from 2% to 29%. The company is expected to report its latest earnings and sales numbers on or around Jan. 26.

KLA Tencor earns the No. 9 rank among its peers in the Electronics-Semiconductor Equipment industry group. Applied Materials ( AMAT ), Entegris ( ENTG ) and Lam Research ( LRCX ) are among the top 5 highly rated stocks within the group.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: RS , KLAC , AMAT , ENTG , LRCX

More from Investor's Business Daily


Investor's Business Daily

Investor's Business Daily


Research Brokers before you trade

Want to trade FX?