When putting together your watch list, focus on stocks with an 80 or higher RS Rating. ePlus now meets that criteria, with an increase from 77 to 86 Thursday.
IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks matches up against the rest of the market.
Over 100 years of market history reveals that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves.
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ePlus broke out earlier, but is now around 4% below the prior 102.32 entry from a ascending base. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new chart pattern and entry price. Also keep in mind that the latest pattern is a later-stage base, and those involve more risk.
While revenue growth fell last quarter from 13% to -5%, the bottom line grew -20%, up from -32% in the previous report. Look for the next report on or around Nov. 7.
ePlus earns the No. 18 rank among its peers in the Computer-Technical Services industry group. CACI International Cl A, Innodata and GitLab Cl A are among the top 5 highly rated stocks within the group.
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