On Friday, Guidewire Software jumped 20.15% as it reported 32% higher quarterly earnings than the Street expected. It rose to a fresh all-time high that day. And its stock continued rising Monday
Meanwhile, on Monday Guidewire stock Relative Strength (RS) Rating shot up a whopping 26 points from 62 on Friday to 88. The upgraded RS Rating shows that Guidewire stock is in the top 12% of all stocks, regardless of industry, for price performance over the last 52 weeks.
Over 100 years of market research shows that the best-performing stocks often have an 80 or higher RS Rating as they launch their biggest climbs. Guidewire stock just leapt over that wall.
Guidewire reported a 35% gain in fiscal fourth quarter earnings Friday, to 84 cents per share, on a 22% hike in revenue to $356.6 million. That was good although down from a huge 238% jump in EPS the prior quarter, on 22% higher sales.
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San Mateo, Calif.-based Guidewire develops web-based policy and claims management software for insurance companies.
Among its other ratings the software maker has a terrific 93 Composite Rating and a best-possible A SMR Rating (sales + profit margins + return on equity). Its A- Accumulation/Distribution Rating shows institutional investors like mutual funds are eager buyers of its stock.
One mediocre rating is its 76 EPS Rating. Look for that to improve based on strong profit growth this year.
Guidewire Software stock appeared to be forming a cup pattern when its stock soared Friday on the earnings beat. Look for the stock to form a fresh base such as a three-weeks-tight or possibly another cup or cup-with-handle. One thing to note is that its latest pattern is a later-stage base. Those can succeed but involve more risk than earlier stage bases.
Guidewire Software showed 35% EPS growth in its most recent report. Revenue rose 22%.
The company holds the No. 2 rank among its peers in the Computer Software-Financial industry group. Pagaya Technologies is the top-ranked stock within the group.
IBD's unique rating tracks price performance with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks stacks up against all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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