Sector rotation has, so far, made some glamorous stocks less appealing and shifted others, including companies that supply goods to the chip industry, in favor of market makers. Among these are Kulicke and Soffa Industries (KLIC) whose composite IBD SmartSelect rating reached a superb 97 on Monday, compared to 94 the day before.
The revised score means the stock currently exceeds 97% of all other stocks in terms of key performance metrics and technical strength. High growth stocks often have a composite rating of 90 or higher before they start large series.
Kulicke & Soffa supplies equipment for hot industries
The supplier of aftermarket equipment and products and services specifically provides wire welding and wafer slicing equipment to semiconductor equipment manufacturers. It also supplies companies with LED and electronic equipment.
Among other key ratings, Singapore-based Kulicke & Soffa has a strong rating of 82 EPS on a scale of 1-99 with 99 highs. Likewise, it enjoys a strong 97 composite rating, which places it in the top tier of growth stocks.
In terms of fundamentals, in Q2 the company posted a 385% increase in earnings per share, to $ 1.26. It has now posted accelerated EPS gains for two consecutive quarters. Sales increased 126% year over year to $ 340.2 million. This growth rate was up from an 86% increase in the previous quarter. This marks three consecutive reports with increasing growth.
CEO Fusen Chen said in the Q2 earnings release that demand for his products is strong. “and is supported by structural dynamics, including growing global dependence on semiconductors. “He also cited” the increasing capital intensity in the semiconductor assembly process. “
Kulicke & Soffa Industries ranks second among its peers in the electronic and semiconductor equipment industry group. ASML (ASML) is the number 1 title of the group.
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Its build / distribute rating of C shows a roughly equal amount of buy and sell by institutional investors over the past 13 weeks.
Kulicke & Soffa Industries is not currently near a suitable purchasing area. Look for the stock to form and come out of a new chart pattern like a three week crunch or a rebound from its 50 day or 10 week line.
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