Many cloud software makers got vaporized in the recent bear market. But standout Box, is showing signs of strength and could rain profits on investors if it can follow through. Its stock rose five straight sessions last week.
Box Stock Climbs Into Top Performers Group
On Monday, the Relative Strength (RS) Rating for Box stock shot up to 85, from 74 the day before, passing a milestone on the way. The new 85 RS Rating means that Box stock has outperformed 85% of stocks over the past year.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating north of 80 in the early stages of their moves.
Box provides a cloud-based platform for companies to manage their content and collaborate internally and with other organizations.
Among other key ratings, Box stock has a 92 Composite Rating. The Composite Rating combines the top five separate, proprietary IBD ratings, based on key fundamental and technical criteria. The best growth stocks have a Composite Rating of 90 or better.
Heavy Accumulation By Big Funds
Box stock also has an outstanding B+ Accumulation/Distribution Rating. The B+ rating indicates that institutional investors such as mutual funds and insurance company funds are accumulating more shares than selling.
Redwood City, Calif.-based Box has a mild 58 EPS Rating. However, that primarily reflects weaker earnings earlier. Last quarter Box's earnings climbed 28%. The prior three periods it posted EPS growth of 17%, 10% and 9%.
Meanwhile, Box's revenue growth rate has risen each quarter over the past year. Last quarter sales rose 18% year over year to $238.4 million. That came after it reported 12%, 14% and then 17% growth the prior three periods.
See How IBD Helps You Make More Money In Stocks
Box stock is trying to complete a consolidation with a 33.14 buy point. See if the stock can clear the breakout price in volume at least 40% above average.
Box stock holds the No. 2 rank among its peers in the Computer Software-Database industry group. Progress Software is No. 1 in the group and Commvault Systems is No. 3.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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