In a welcome move, NetApp saw its Relative Strength Rating improve from 69 to 74 on Thursday.
This proprietary rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks compares to the rest of the market.
Decades of market research reveals that the stocks that go on to make the biggest gains typically have an RS Rating of over 80 as they launch their biggest climbs. See if NetApp can continue to show renewed price strength and hit that benchmark.
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NetApp broke out earlier, but is now around 4% below the prior 135.01 entry from a consolidation. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form. Also understand that the latest consolidation is a later-stage base, and those involve more risk.
The company showed 18% earnings growth in the latest quarterly report, while sales growth came in at 6%.
The company holds the No. 1 rank among its peers in the Computer Software-Storage industry group. Pure Storage Cl A and Western Digital are also among the group's highest-rated stocks.
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