Looking for an undervalued stock? MaxLinear may fit that bill. With semiconductor stocks in general poised for growth, The communications-chip maker has recorded triple-digit sales and profit growth for the past two quarters. Its growth is surging but it’s stock isn’t on Big Money’s radar yet. On Thursday, the Relative Strength (RS) Rating for Maxlinear (MXL) climbed to a new percentile, rising to 71, up from 67 the day before.
The 71 RS Rating means Carlsbad, Calif.-based Maxlinear has outperformed 71% of all stocks, regardless of industry group, over the past year. The best growth stocks often have an RS Rating of over 80 as they begin their largest price moves. See if MaxLinear can continue to rebound and clear that threshold.
MaxLinear: Mild Technicals, Outstanding Fundamentals
Other technical metrics for the maker of radio frequency, analog and mixed-signal chips for broadband communications and video display devices are also less than outstanding. It has a 75 Composite Rating of a best-possible 99. And its EPS Rating is a mild 71 despite recent powerful profit gains. And its Accumulation/Distribution Rating is a weak D+, on an A+ to E scale with A tops. The D+ rating indicates that institutional investors are selling more than buying.
However, taking a look at top and bottom line numbers, MaxLinear has posted four quarters of increasing earnings growth. Sales growth has also moved higher during the same period.
Specifically, last quarter it reported a 686% leap in EPS to 55 cents, on a 238% increase in revenue, to $209.4 million. Its EPS the prior two quarters grew 39%, then 144%. Revenue the prior two periods rose 96%, then 178%.
The company earns the No. 6 rank among its peers in the Electronics-Semiconductor Fabless industry group. Maxim Integrated Products (MXIM) and Lattice Semiconductor (LSCC) are also among the group’s highest-rated stocks.
MaxLinear is building a consolidation with a 44.15 entry. See if the stock can break out in heavy trading. Its stock popped 3.46% to 35.61 Thursday afternoon.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor’s Business Daily identifies price movement with a 1 (worst) to 99 (best) score. The score shows how a stock’s price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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