Artificial intelligence software maker Confluent is putting up amazing growth numbers. That includes a 400% surge in earnings last quarter on a 25% rise in revenue, the latest in a string of triple-digit EPS hikes.
Mountain View, Calif.-based Confluent makes a cloud-based AI platform that the company says "acts like a central nervous system" in a company's network. It uses what Confluent calls its "data in motion" technology. That lets companies connect all of their applications in real time, enabling rapid response to everything happening in that business.
It counts among its customers Walmart, eBay, Citigroup, Instacart parent Maplebear and many others.
Confluent A Favorite Of Big Investment Funds
On Tuesday, the Relative Strength (RS) Rating for Confluent stock moved up into a higher percentile, as it got a lift from 69 to 75. Its other ratings shine even brighter. It has a strong 81 EPS Rating, and a near-best 97 Composite Rating out of 99. The Composite Rating is a combination of five other IBD fundamental and technical metrics.
Additionally, Confluent stock has an A- Accumulation/Distribution Rating on an A+ to E scale. The A- rating shows that big funds are heavy buyers of its stock.
Small-cap Confluent is no flash in the pan; it's been growing rapidly for some time. Over the last four quarters Confluent reported EPS gains of 211%, 156%, 500% and 400% last quarter to 10 cents per share. During that period sales grew 26%, 25%, 24% and 25%, to $250.2 million last quarter.
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Confluent went public during the pandemic, launching in June 2021 and soaring to 94.97 in November that year, forming its IPO base. It consolidated from there, falling to a 14.69 low in November 2023. Tuesday afternoon Confluent stock traded around 27.50, up for the day and nearly doubling in the past year.
No. 2 In 21-Stock Industry Group
Confluent earns the No. 2 rank among its peers in the 21-stock Computer Software-Database industry group. Commvault Systems is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database. The best stocks typically have an RS Rating of at least 80 in the early stages of their moves. See if Confluent can continue to show renewed price strength and hit that benchmark.
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