On Thursday, Cloudflare got an upgrade for its IBD SmartSelect Composite Rating from 94 to 97.
The upgrade means the stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Cloudflare is currently forming a cup with handle, with a 99.17 buy point. See if the stock can break out in heavy trade at least 40% above average.
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One weak spot is the company's 75 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
The company reported a 25% rise in earnings for Q3. Sales growth came in at 28%, down from 30% in the previous quarter.
Cloudflare holds the No. 7 rank among its peers in the Computer Software-Enterprise industry group. Samsara, ServiceNow and Palantir Technologies are among the top 5 highly-rated stocks within the group.
