The IBD SmartSelect Composite Rating for Model N rose from 90 to 97 Tuesday.
The new rating is a sign the stock is outpacing 97% of all stocks when it comes to the most important stock-picking criteria. The market's biggest winners often have a 95 or higher score 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.
Model N stock is not currently near a proper buy point. Also of note, it is a small cap stock, so total volume is small. It is trying to reverse a downtrend, and has moved above some key moving averages, according to a MarketSmith chart. Look for the stock to form and break out of a new chart pattern, ideally in heavier volume.
Looking For Winning Stocks? This 3-Step Routine
Earnings Review
The stock has a 96 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth is outpacing 96% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
In Q1, the company reported 53% EPS growth. Top line growth climbed 15%, up from 13% in the prior quarter. The company has now posted rising growth in each of the last two quarters.
Model N earns the No. 4 rank among its peers in the Computer Software-Enterprise industry group. Asure Software is the top-ranked stock within the group.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
