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Telecom Clearfield Stock Sees Composite Rating Rise To 97

Clearfield (CLFD) saw an improvement in its IBD SmartSelect Composite Rating Monday, from 91 to 97. The telecom stock has a 93 Relative Strength Rating.

Clearfield announced plans to expand its manufacturing capacity in Tijuana, Mexico, with a lease arrangement for 319,000-square-foot manufacturing and warehouse center. The fiber optic management firm anticipates future demand and growth for its business and poised to take on the additional capacity.

The new rating is a sign the stock is outpacing 97% of all stocks when it comes to the most important stock-picking criteria. Winning stocks often have a 95 or higher rating in the early stages of a new price run, so that’s an important benchmark to look for when looking for the best stocks to buy and watch.

Clearfield is currently forming a cup without handle, with a 43.74 buy point. Look for the stock to break out in heavy trade at least 40% higher than normal. Keep in mind that it’s a later-stage base, and those involve more risk. Understand that it is a thinly traded stock, with average daily dollar volume under $8 million. Such stocks may experience more volatility than large-cap stocks.


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The stock sports an 84 EPS Rating, meaning its recent quarterly and annual earnings growth is outpacing 84% of all stocks.

Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.

In Q3, the telecom company reported 100% EPS growth. Sales growth climbed 49%, up from 45% in the prior report. That marks three consecutive reports with rising growth.

Clearfield holds the No. 1 rank among its peers in the Telecom-Fiber Optics industry group. Dasan Zhone Solutions (DZSI) and Viavi Solutions (VIAV) are also among the group’s highest-rated stocks. For more industry news, check out “Telecom Stocks To Watch And Industry News.”

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