Cybersecurity software maker Cloudflare says on its website that it blocks 100 billion cyberthreats daily. It's among the top-rated stocks in the computer software group, and the Relative Strength Rating for Cloudflare stock shot up from 70 last week to 79 on Monday.
That rating is just one point below the 80 RS Rating that CAN SLIM investors look for when searching for top stocks to buy and watch. See if it maintains momentum and climbs above that threshold.
Cloudflare Stock Composite Rating Near Perfect
Cloudflare stock also boasts a 97 Composite Rating out of 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Additionally, the software maker carries a respectable 81 Earnings Per Share Rating.
San Francisco-based Cloudflare is well known for its cybersecurity features, and it makes software for firewall, routing, traffic optimization, load balancing and other network functions.
The software company went public in September 2019 and closed at 18 a share shortly after. It rose steadily and then plunged during the 2022 bear market, falling to 37.56 on Jan. 6 this year. It's risen about 64% since then and closed near 62 Monday afternoon.
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Earnings Small, But Multiplying Quickly
Despite Cloudflare stock's roller coaster ride, its fundamentals have held fast. Its earnings and revenue have grown rapidly, especially its revenue.
Earnings per share growth for the software maker ranged from 500% to 900%, although from a tiny base. The software maker reported 10 cents per share profit last quarter, up from a penny a share the same quarter a year ago. Sales in its most recent quarter rose 32% to $308.50 million. The prior three periods its sales grew 47%, 42% and 37%.
Cloudflare stock holds the No. 6 rank among its peers in the 127-company Computer Software-Enterprise industry group. ServiceNow and Workday are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks holds up against all the other stocks.
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