A handful of stocks outperform others, and these market leaders are easy to spot on the IBD Stock Screener. Today's Screen Of The Day features three companies with strong technical ratings that also show their relative strength lines have made new highs: Akamai, Manhattan Associates and Uber stock.
The relative strength line compares a stock's price performance to the S&P 500. AKAM Stock, MANH stock and Uber stock each have seen their RS lines move up and also have high Relative Strength Ratings.
AKAM Stock: Moving Into A Buy Zone
Akamai Technologies is in a buy zone from a flat base with a buy point of 107.47, according to IBD MarketSmith. And AKAM stock is sure to get a boost when the market opens Wednesday from its third-quarter results.
Late Tuesday, Akamai reported earnings of $1.63 a share on revenue of $965 million. Analysts predicted earnings of $1.50 a share and sales at $944 million, both ahead of analyst estimates. The company also predicted earnings of $1.60 a share at the midpoint, vs. the Street's estimate of $1.54 a share.
AKAM stock has a Composite Rating of 93 and EPS Rating of 85. The RS Rating of 94 has risen from 39 a year ago. The stock also shows strong institutional support with an Accumulation/Distribution Rating of A-.
Sales have grown over the past seven quarters though earnings growth has been mixed.
Akamai provides software for cloud computing, security and content delivery to enterprises.
MANH Stock Has RS Rating At A New High
Another enterprise software firm, Manhattan Associates has cleared an entry at 205.70 in a cup with handle. The stock also trades near an all-time high.
MANH stock has high technical ratings with its Composite Rating at 98 out of a best-possible 99. Its EPS and RS ratings stand at 96. The RS Rating has climbed from 29 a year ago.
Manhattan Associates makes supply chain management software for businesses. In the third quarter, an increase in cloud subscriptions drove revenue growth of 20%. The company expects sales to grow 19% for the full year.
Further, earnings growth accelerated for the second quarter in a row. For the full year, Wall Street expects a 27% growth in earnings.
Mutual funds own 60% of outstanding shares. More fund managers have been buying the stock over the past six quarters.
Uber Stock Clears A Double-Bottom Entry
Finally, Uber has found a spot on this screen as the company has turned profitable. Uber stock topped a double-bottom entry of 49.19 — all amid strong buying volume — after earnings were released Tuesday.
Sales of the ride-sharing titan reached $9.2 billion, growing 11%. Earnings of 10 cents per share reversed from a 61-cent loss in the year-earlier quarter. It was Uber's second reporting period in the black ever.
The relative strength line for Uber stock also is at a new high. The RS Rating for Uber stock has increased from 43 a year ago to 96.
Shares have doubled year to date. Further, mutual funds own 50% of Uber stock.
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