The Relative Strength (RS) Rating for Palo Alto Networks jumped into a new percentile Thursday, with a rise from 79 to 86.
IBD's unique RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains often have an 80 or higher RS Rating as they launch their biggest price moves.
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Palo Alto Networks broke out earlier, but has fallen back below the prior 197.74 entry from a cup with handle. If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. Also understand that the latest consolidation is a later-stage base, and such bases are more prone to failure.
The company showed 11% EPS growth last quarter, while sales growth came in at 14%.
Palo Alto Networks earns the No. 3 rank among its peers in the Computer Software-Security industry group. Fortinet is the No. 1-ranked stock within the group.
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