Add another company to the growing roster adding artificial intelligence to their products. PagerDuty, which makes software that enables companies to find, report and fix software incidents, among other things, in April rolled out PagerDuty AIOps. On Tuesday, the IBD SmartSelect Composite Rating for PagerDuty stock climbed to a near-best 96, up from 93.
The upgraded score indicates PagerDuty stock is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The best stocks to buy and watch tend to have a 90 or better grade as they start a significant move.
PagerDuty Stock Pegged To AI Solutions
In its rollout of its AI-enhanced PagerDuty AIOps on April 11, the company touted the speed and efficiency of the new tool. "In a resource-constrained environment, teams can't wait for yearlong implementations, they need help now. Organizations are looking for a solution that has fast time to value, integrates with their existing systems, and provides fast ROI," the company said.
Among its other key ratings PagerDuty has an 81 Earnings Per Share Rating, putting it in the top 19% of all companies for recent and long-term profit growth. It has an OK 72 Relative Strength Rating and a C+ Accumulation/Distribution Rating. The C+ rating shows that institutional investors bought more shares than they sold over the past 13 weeks. The number of funds owning PD stock climbed from 353 in December to 373 in March.
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PagerDuty Formed Fresh Base, No Breakout Yet
PagerDuty stock recently formed a cup-with-handle pattern. It hasn't broken out yet though. The watchlist candidate drifted lower, although it is finding support at its 200-day line. On Tuesday, it rose about 1.3% to 127. Look for the stock to form and break out of a new chart pattern.
Last quarter the small-cap software maker reported an 8-cents-per-share profit, reversing from a 4-cent loss the same quarter a year ago. Also last quarter it recorded a 29% surge in revenue to $101 million. The company says on its website it will report first quarter earnings on Thursday after the market closes.
PagerDuty stock holds the No. 3 rank among its peers in the Computer Software-Desktop industry group, according to IBD Stock Checkup. Adobe is No. 1 in the group, and Microsoft No. 2 among the group's highest-rated stocks. The software group itself ranks a lofty No. 12 among the 197 industry groups that IBD tracks.
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