When building your watch list, look for stocks with an 80 or higher RS Rating. Crowdstrike Holdings is one stock that just reached the mark, now earning a score of 81.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks matches up against that of all other stocks.
History reveals that the market's biggest winners tend to have an RS Rating north of 80 in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
While now is not an ideal time to buy shares, see if the stock goes on to form a consolidation and break out after 2nd quarter earnings are behind them.
Earnings growth rose last quarter from 131% to 210%. But revenue gains fell from 63% to 61%. The company is expected to report its latest numbers on or around Aug. 31.
The company holds the No. 4 rank among its peers in the Computer Software-Security industry group. Hireright Holdings Corp and Palo Alto Networks are also among the group's highest-rated stocks.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
