On Wednesday, Splunk earned a positive adjustment to its Relative Strength (RS) Rating, from 65 to 71.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique rating measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
History shows that the best stocks typically have an RS Rating north of 80 as they launch their largest climbs. See if Splunk can continue to rebound and clear that threshold.
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Splunk is working on a cup with handle with a 110.05 buy point. See if the stock can clear the breakout price in heavy volume.
Earnings growth rose last quarter from 0% to 209%. But revenue gains fell from 40% to 39%. Look for the next report on or around May 24.
The company holds the No. 5 rank among its peers in the Computer Software-Database industry group. Dropbox and MongoDB are also among the group's highest-rated stocks.
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