Fast-growing software maker Confluent continues to report sizzling earning growth — up 400% year over year last quarter, 500% the quarter before that. Sales are rising too amid rapid adoption of the highly ranked software maker's cloud-based AI-driven software.
Its stock is trading well below its post-IPO high set in November 2021. That shows it has a long growth runway, and it may be prepping for takeoff.
On Wednesday, the Relative Strength (RS) Rating for Confluent stock climbed nine points to 77. The 77 RS Rating puts Confluent stock in the top 23% of all stocks, and just a few points below a key benchmark. Market history shows that the best-performing stocks typically have an RS Rating of at least 80 as they begin their largest climbs. See if Confluent can continue to show price strength and clear that threshold.
Confluent's 'Central Nervous System' Guides Networks
Mountain View, Calif.-based Confluent's cloud-based data-streaming platform provides what it calls "a central nervous system" for companies' networks. A wide variety of companies and industries are adopting Confluent's platform including Walmart, Intel, eBay, Michelin and Citigroup.
How To Invest In Stocks In Both Bull And Bear Markets
Confluent stock went public in late June 2021 and traded at 47 shortly after its IPO. It quickly soared to 94.97 in November that year and then started falling. It plunged to a 16.93 low on Nov. 3 last year and launched a turnaround. Wednesday afternoon Confluent stock traded above 28, up 65% from its 2023 low but still well below its all-time high.
CFLT Recently Popped On Earnings
The software maker's stock popped 13.4% on Oct. 31 on its strong earnings report.
Confluent earns the No. 2 rank among its peers in the 22-stock Computer Software-Database industry group. Commvault Systems is the No. 1-ranked stock within the group.
The unique IBD Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
RELATED:
Which Stocks Are Showing Rising Relative Strength?
Get Full Access To IBD Stock Lists And Ratings
Why Should You Use IBD's Relative Strength Rating?
IBD Live: A New Tool For Daily Stock Market Analysis
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
