One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Cloudflare cleared that benchmark Wednesday, with a jump from 76 to 81 Wednesday.
IBD's unique RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
Decades of market research shows that the stocks that go on to make the biggest gains often have an 80 or higher RS Rating in the early stages of their moves.
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Cloudflare is working on a cup with handle with a 96.30 buy point. See if it can clear the breakout price in volume at least 40% above average.
The company showed 100% earnings growth last quarter. Revenue gains came in at 30%. The next quarterly results are expected on or around Nov. 7.
The company earns the No. 9 rank among its peers in the Computer Software-Enterprise industry group. Klaviyo, monday.com and ServiceNow are among the top 5 highly rated stocks within the group.
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