The Relative Strength (RS) Rating for Teradata rose into a new percentile Tuesday, as it got a lift from 68 recently to 79 Tuesday after it reported outstanding earnings on Monday. Teradata shares shot up more than 26% Tuesday in heavy volume.
The 79 RS rating means that Teradata stock has outperformed 79% of all stocks over the past year. The company provides data warehousing for enterprises, along with data analysis and services. As its name implies, it stores and analyzes massive amounts of data for customers. Tera means 1 trillion.
Customers include Air France and Air Canada. Also BMW, Boeing and Berkshire Hathaway's BNSF Railway, among a host of others.
On Monday, San Diego-based Teradata reported a 50% surge in earnings to 57 cents per share. The prior three quarters the company reported EPS growth of 156%, 208% and then flat vs. the same quarter a year ago. Revenue last quarter eased 3% to $475 million.
Among other key ratings, Teradata stock has a 73 Composite Rating, of a best-possible 99. Its 55 EPS Rating is lighter than CAN SLIM investors like to see, but it's likely to rise amid recent strong profit growth.
Bullishly, Teradata stock has a B Accumulation/Distribution Rating, on an A+ to E scale. The B rating means that institutional investors are fairly heavy buyers of its stock.
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Teradata stock earns the No. 5 rank among its peers in the Computer Software-Database industry group. Box and Oracle 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.
IBD's proprietary Relative Strength Rating tracks share price action with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
