This time of year everything is in bloom in the seaside town of Santa Cruz on the California coast. This year that includes sales and profits for hometown electronics maker Plantronics. On Tuesday, the Relative Strength (RS) Rating for Plantronics (PLT) climbed to a lofty 92, up from 89 the day before.
The 92 RS Rating means Plantronics has outperformed 92% of all stocks, regardless of category, over the past year.
The rating bump comes after Plantronics last quarter reported a 390% surge in earnings, to $1.42 per share. Revenue climbed 26% to $484.7 million. The outstanding numbers came after three difficult quarters, during which sales and profits were impacted by coronavirus shutdowns.
History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating of above 80 as they launch their biggest price moves.
The maker of premium headsets and headphones also carries a strong 86 Composite Rating.
IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
In terms of top and bottom line numbers, Plantronics has posted three quarters of rising earnings growth. Sales gains have also increased during the same period. Plantronics is expected to report its next quarterly numbers on or around May 27.
The company earns the No. 4 rank among its peers in the Consumer Products-Electronics industry group. Industry giant Garmin (GRMN) and Vizio (VZIO) are among the top 5 highly rated stocks within the group. Smart TV maker Vizio reported outstanding earnings late Tuesday, but its stock fell in after-hours trading.
Plantronics shares dipped 0.6% to 40.77 Tuesday. Garmin fell 1.3% to 140.59 and Vizio rose 2.7% ahead of earnings, to 27.35.
Plantronics is trying to complete a consolidation with a 50.99 buy point. See if the stock can clear the breakout price in heavy trading.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. This unique rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock’s price performance over the trailing 52 weeks matches up against the rest of the market.
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