The Relative Strength (RS) Rating for Splunk entered a new percentile Tuesday, with a rise from 72 to 81.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique rating tracks market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows that the market's biggest winners tend to have an 80 or better RS Rating in the early stages of their moves.
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While it's not currently an ideal time to invest in Splunk based on the chart, the stock has just crossed above its 200 day MA with six straight up days. Now let's see if the stock goes on to form a pattern with a proper buy point plus heavier volume.
Earnings grew 74% last quarter, up from 0% in the prior report. Revenue also increased, from 19% to 21%.
Splunk stock earns the No. 8 rank among its peers in the Computer Software-Database industry group. NetScout Systems and Progress Software are also among the group's highest-rated stocks.
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