Dropbox stock saw a welcome improvement to its Relative Strength (RS) Rating on Thursday, with an upgrade from 70 to 73.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains typically have an RS Rating of at least 80 in the early stages of their moves. See if Dropbox can continue to show renewed price strength and clear that threshold.
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Is Dropbox Stock A Buy?
Dropbox stock is working on a cup-with-handle pattern. The cloud storage stock is not currently near a potential buying area, but deserves a spot on your watchlist. It's not a good idea to add shares amid a stock market correction. Wait for a market reversal to uptrend.
While revenue growth fell last quarter from 8% to 7%, earnings-per-share grew 16%, up from -5% in the prior report.
Dropbox stock earns the No. 4 rank among its peers in the Computer Software-Database industry group. Oracle and CommVault Systems are also among the group's highest-rated stocks.
