One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Check Point Software just hit that mark, with a jump from 76 to 84 Wednesday.
This exclusive rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an RS Rating of above 80 as they begin their biggest climbs.
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Check Point Software is trying to complete a consolidation with a 210.70 entry. See if the stock can break out in volume at least 40% above average. Keep in mind that it's a later-stage consolidation, and those are riskier than earlier-stage patterns.
The company reported 9% earnings growth in its most recent report, while sales growth came in at 7%. Look for the next report on or around Jan. 30.
Check Point Software earns the No. 6 rank among its peers in the Computer Software-Security industry group. CyberArk Software, Fortinet and CrowdStrike Holdings are among the top 5 highly rated stocks within the group.
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