Model N boasts what could be called, well, a model stock chart. The small-cap software maker saw its IBD SmartSelect Composite Rating jump to a near-best 96 Friday, up from 94 the day before. Model N stock hit a near-term bottom at 20.95 near the end of May. Since then it's shot up about 85% to about 39 Monday afternoon, down fractionally for the day.
The new Composite score indicates the maker of revenue tracking software for tech companies is now outperforming 96% 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 moves.
Model N Stock's Other Ratings Shine
The 95 EPS Rating for Model N stock means its recent quarterly and annual earnings growth is outpacing 95% of all stocks.
Its Accumulation/Distribution Rating of A (on an A+ to E scale with A+ tops) shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
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MODN May Be Good Watchlist Candidate
With the recent upturn in the market, highly rated Model N stock may be a good watchlist candidate. However, it has now climbed above a proper buy zone after clearing the 35.10 entry in a cup-without-handle base recently. Watch for a fresh buy point such as a three-weeks tight pattern or a bounce off its 50-day or 200-day line.
Last quarter San Mateo, Calif.-based Model N reported 11% earnings-per-share growth, to 20 cents per share. Revenue grew 13% to $58.2 million, up from 10% growth in the prior report.
Model N stock holds the No. 1 rank among its peers in the Computer Software-Enterprise industry group. A10 Networks and Aspen Technology are also among the group's highest-rated stocks.
