Wire bonding and advanced packaging may not appeal to some, but for Kulik sofa (KLIC) and the large number of semiconductor companies it serves and the industries it serves, these products mean success. On Tuesday, Kulicke & Soffa stock’s relative strength (RS) rating rose into the higher percentile, climbing to 84 from 79.
Kulicke & Soffa shares outperform
An improved 84 RS rating means that Kulicke & Soffa stock has outperformed 84% of all stocks in the IBD database. When looking for the best stocks to buy and watch, one factor to keep an eye on is relative price strength. Market research shows that the best performing stocks typically have an RS Rating of 80 or higher when they start their biggest gains.
Singapore-based Kulicke & Soffa specializes in packaging and other products and services to manufacturers of semiconductor chips, light-emitting diodes (LEDs) and electronic equipment manufacturers. Its products enter end markets ranging from automotive to consumer, communications, computing and industrial markets. The semiconductor market has been heating up lately, which could bode well for Kulicke & Soffa.
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Among its other major ratings, Kulicke & Soffa stock has an 84 Composite Rating out of 99, an EPS Rating of 72, and a Strong Accumulation/Distribution Rating of B+ on a scale of A+ to E, with A+ Excellent and E Dismal .
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In a 2022 bear market, Kulicke & Soffa stock fell to a low of 35.95 in mid-October. It closed at 51.39 on Tuesday, down for the day but up 43% from its lows. In addition, it is well above the 50-day moving average and the 200-day moving average, but has yet to form a concrete pattern. See if the stock continues to form a new base, such as a three-week tightening pattern, that could spark higher gains.
The stock watch list candidate posted sales and earnings growth last quarter that was lower than tough competition a year ago. Kulicke & Soffa said on its website that it will report first-quarter earnings before the market opens on Feb. 2. On Nov. 16, management said they expect the company to earn about 20 cents a share on revenue of about $175 million in the first quarter.
Kulicke & Soffa stock ranks No. 13 among its peers in the Electronics-Semiconductor Equipment industry group. Aehr Test System (AEHR) and Advanced Energy Industry (AEIS) is also one of the group’s highest-rated stocks.
IBD’s unique RS Rating measures market leadership by using a score from 1 (worst) to 99 (best), which indicates that a stock’s price action has matched that of all other shares over the past 52 weeks.
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