Based on Monday's market action, Zscaler got a positive adjustment to its Relative Strength (RS) Rating, from 88 to 91. But even that did not help it in today's trading. The stock is down almost 4% as of this writing.
When looking for the best stocks to buy and watch, be sure to pay attention to relative price strength. IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the top-performing stocks tend to have an RS Rating north of 80 as they begin their biggest runs.
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While Zscaler is not actually near a proper buy zone right now, see if it is able to form and break out from a proper chart pattern. One slight positive on today's action is the volume is rather low.
Zscaler posted 156% EPS growth in the latest quarterly report. Sales rose 43%.
Zscaler earns the No. 1 rank among its peers in the Computer Software-Security industry group. Palo Alto Networks is also among the group's highest-rated stocks.
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