On Tuesday, Cerence got an upgrade to its Relative Strength (RS) Rating, from 67 to 77. The 77 RS Rating means that Cerence stock has outperformed 77% of all stocks over the past year.
Stocks tend to have an 80 or better RS Rating as they begin their biggest price moves. See if Cerence can continue to show renewed price strength and clear that threshold.
Cerence Stock's Other Ratings Shine
Cerence develops AI assistance software for autos, a market hotspot. Its portfolio includes voice-activated entertainment and safety features.
Meanwhile, other ratings for the Burlington, Mass.-based company show hidden strength. Cerence launched its IPO in October 2019, and closed at 13.85 shortly after going public. It closed at 108.64 Wednesday, up more than 5% for the day.
For example, Cerence stock's 94 Composite Rating puts it in the top 6% of stocks on that metric. 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, it carries a 91 EPS Rating, of a best-possible 99. The company has seen hefty growth in both earnings and sales. Last quarter, EPS jumped 94% to 62 cents on a 29% rise in revenue to $96.8 million. The prior three quarters its EPS rose 17%, 86% and 60%. Revenue rose 29% in its most recent quarter.
The company earns the No. 3 rank among its peers in the Computer Software-Desktop industry group. Adobe is also among the group's highest-rated stocks.
Looking For Winning Stocks? Try This Simple Routine
While the stock is currently consolidating, see if Cerence stock manages to form a fresh chart pattern and break out, such as a three-weeks-tight, or a rebound off of its 50-day or 10-week line.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive rating from Investor's Business Daily tracks price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
