Dropbox stock saw a positive improvement to its Relative Strength (RS) Rating on Wednesday, rising from 67 to 74.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks compares to other publicly traded companies.
History reveals that the market's biggest winners tend to have an RS Rating of above 80 in the early stages of their moves. See if Dropbox stock can continue to show renewed price strength and hit that benchmark.
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Is Dropbox Stock A Buy?
Dropbox stock is still inside a buy range after climbing above a 24.19 buy point in a cup with handle. Once a stock moves 5% or higher beyond the original entry, it's considered out of a proper buy zone.
While sales growth fell last quarter from 8% to 7%, the bottom line grew 16%, up from -5% in the previous report. Look for the next report on or around Feb. 16.
Dropbox stock earns the No. 3 rank among its peers in the Computer Software-Database industry group. Progress Software and Dropbox are also among the group's highest-rated stocks.
