Tech leader Commvault Systems is building a cup base and nearly has the right side completed. Its relative strength line — a gauge of a stock's strength vs. all other stocks — is at a nearly four-month high. Additionally, the Relative Strength Rating for Commvault stock jumped from 77 to 84 Tuesday. So is it a good time to buy Commvault stock?
Commvault Stock Queues Up For Big Gains
The upgraded 84 RS Rating shows that Commvault stock is in the top 16% of stocks for price strength over the past year. It's a significant upgrade. Stocks that go on to make the biggest gains often have an 80 or higher RS Rating as they launch their biggest price moves.
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Commvault develops backup and recovery, replication, archival and data storage management software for enterprises.
Among its other ratings small-cap Commvault stock has an excellent 96 Composite Rating out of 99. It also boasts a 94 Earnings Per Share Rating, putting it in the top 6% of companies for recent and long-term profit growth. Its B Accumulation/Distribution Rating on an A+ to E scale shows that ETFs, mutual funds and the like are buying more of its stock than selling.
Commvault stock is working on a cup without handle with a 78.80 buy point. See if the stock can break out in heavy trade. Shares of the Tinton Falls, N.J.-based company were at a 53.70 low in mid-March as it began to climb, forming a cup along the way. Commvault closed at 72.82 Tuesday, down fractionally for the day, and up about 36% since mid-March.
Sales, Profits Improved Over Last 3 Quarters
Regarding fundamentals, the company has posted three quarters of rising earnings growth. Top line growth has also risen during the same period. Last quarter it recorded a 23% increase in earnings to 70 cents per share on a 7% rise in revenue to $201 million.
Commvault stock holds the No. 7 rank among its peers in the 25-stock Computer Software-Database industry group. MongoDB and Open Text are also among the group's highest-rated stocks. The group overall has an excellent A Group Relative Strength Rating.
When looking for the best stocks to buy and watch, a stock's relative price strength vs. other stocks says a lot about whether it's worth buying.
The exclusive RS Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks holds up against all the other stocks in our database.
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