On Wednesday, Cloudflare earned a positive adjustment to its Relative Strength (RS) Rating, from 89 to 92.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Decades of market research reveals that the best-performing stocks typically have an RS Rating north of 80 at the beginning of a new run.
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The IBD 50 stock is currently in a buy zone after moving past a 66.20 entry in a double bottom. Once a stock moves 5% or higher beyond the initial entry, it's considered out of a proper buying area. After gapping up yesterday, it is down slightly as of this writing. Waiting on the Fed could be the reason.
Earnings growth picked up last quarter from 500% to 700%. But sales fell from 42% to 37%.
Cloudflare earns the No. 1 rank among its peers in the Computer Software-Enterprise industry group. Dynatrace and JFrog are also among the group's highest-rated stocks.
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