One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Descartes Systems Group cleared that benchmark Friday, with a jump from 77 to 81 Friday.
This exclusive rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History reveals that the best-performing stocks tend to have an RS Rating of above 80 as they begin their biggest price moves.
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Descartes Systems Group broke out earlier, but is now trading approximately 3% below the prior 120.78 entry from a cup with handle. If a stock you're watching climbs above a buy point then falls 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 pattern is a later-stage base, and those involve more risk.
Taking a look at top and bottom line numbers, the company has posted rising EPS growth in each of the last four reports. Revenue growth has also increased during the same period. Descartes Systems Group is expected to report its next quarterly numbers on or around Mar. 5.
Descartes Systems Group holds the No. 1 rank among its peers in the Computer Software-Special Enterprise industry group. Descartes Systems Group and Atlassian Cl A are also among the group's highest-rated stocks.
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