On Wednesday, Palo Alto Networks stock reached an important technical milestone, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 92, up from 89 the day before.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength. IBD's unique rating identifies price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history shows that the best-performing stocks typically have an RS Rating of above 80 at the beginning of a new climb.
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Is Palo Alto Networks Stock A Buy?
Palo Alto Networks stock is currently trading below its 200-day moving average, amid a bear market. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the stock goes on to establish and enter a buy zone in heavy trade.
While revenue growth fell last quarter from 32% to 30%, the bottom line grew 12%, up from 1% in the prior report. The next quarterly numbers are expected on or around May 20.
Palo Alto Networks stock earns the No. 5 rank among its peers in the Computer Software-Security industry group. Mimecast and Hireright Holdings Corp are among the top 5 highly rated stocks within the group.
