When building your watch list, focus on stocks with an 80 or higher RS Rating. Okta is one stock that just reached the mark, now earning a score of 85.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against 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 tend to have an 80 or higher RS Rating as they begin their biggest climbs.
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Okta stock is building a consolidation with an 87.98 buy point. As it closes in on that price, see if the stock can clear the breakout price in heavy volume.
The company posted 0% earnings growth last quarter. Revenue gains came in at 33%. The company is expected to report its latest numbers on or around Jun. 2.
The company earns the No. 6 rank among its peers in the Computer Software-Security industry group. Palo Alto Networks and Absolute Software are also among the group's highest-rated stocks.
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