Cloudflare stock had its Relative Strength (RS) Rating upgraded from 66 to 77 Wednesday -- a welcome improvement, but still below the 80 or higher score you look for.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks compares to the rest of the market.
Over 100 years of market history shows that the best stocks tend to have an RS Rating north of 80 as they launch their biggest runs. See if Cloudflare stock can continue to show renewed price strength and hit that benchmark.
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Is Cloudflare Stock A Buy?
Cloudflare stock has been trading in a narrow flat base the past three months. While the stock is not near a proper buy point right now, see if it goes on to form and break out from a proper base.
While sales growth fell last quarter from 37% to 32%, earnings-per-share grew 900%, up from 700% in the previous report.
Cloudflare stock earns the No. 8 rank among its peers in the Computer Software-Enterprise industry group. ServiceNow and Workday are also among the group's highest-rated stocks.
