On Tuesday, Palo Alto Networks received an upgrade to its Relative Strength (RS) Rating, from 90 to 93.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength. IBD's unique rating measures share price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows that the top-performing stocks tend to have an RS Rating of at least 80 as they begin their largest climbs.
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The IBD Sector Leaders stock is building a consolidation with a 213.73 buy point. Two things to keep in mind; first, it is a long 56-week consolidation. Second, earnings are in two weeks.
If you listened to IBD Live this today you might have heard David Ryan mention this stock. He indicated it would be perfect for a watch list as it is currently a little extended, having moved up strong for 5 consecutive days. See if it can level out a little and then clear the breakout price in volume higher than normal.
Earnings Preview
Top and bottom line growth moved higher in the company's most recent quarter. Earnings were up 81%, compared to 51% in the prior report. Revenue increased from 25% to 26%. Keep an eye out for the company's next round of numbers on or around May 23.
Palo Alto Networks earns the No. 2 rank among its peers in the Computer Software-Security industry group. Fortinet is the No. 1-ranked stock within the group.
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