Elastic saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 94 to 96.
The revised score means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. Winning stocks often have a 95 or higher rating in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Elastic is not currently near a proper entry. Look for the stock to form and break out of a new chart pattern.
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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 B shows moderate buying by institutional investors over the last 13 weeks.
In Q2, the company reported 59% earnings-per-share growth. That marks two straight quarters of rising EPS growth. Top line growth was flat, matching the prior report's 18%.
Elastic earns the No. 3 rank among its peers in the Computer Software-Database industry group. Confluent is the top-ranked stock within the group.
