Elastic saw its IBD SmartSelect Composite Rating rise to 97 Monday, up from 94 the day before.
The new score means the company is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Elastic is not currently near a proper entry. See if the stock goes on to form a new chart pattern and offer a new buying opportunity.
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One weak spot is the company's 77 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
The company posted a 59% rise in earnings for Q2. That means it's now delivered two straight quarters of rising EPS growth. Revenue was flat, matching the prior quarter's 18%.
Elastic holds the No. 3 rank among its peers in the Computer Software-Database industry group. Confluent is the No. 1-ranked stock within the group.
