Rubrik is building the right side of a cup base with a buy point of 103. The relative strength line is rising as shares head for a four-day winning streak on Thursday, according to IBD MarketSurge.
Rubrik stock is Thursday's selection for IBD 50 Growth Stocks To Watch.
Rubrik makes security software for businesses across several industries. In June, the company said it entered into an agreement to buy Predibase to enable enterprises to access generative artificial intelligence models for data management.
Shares fell after first-quarter results on June 6. The company reported a loss of 15 cents per share, though sales grew 49% to $278.5 million. Revenue from subscriptions rose 54% from the prior year.
The company expects to report a loss of 34 cents per share at the midpoint for its second quarter while sales guidance sits at $282 million. Analysts polled by FactSet also have estimates of a loss of 34 cents per share, with sales at $281.9 million.
For the full year, Rubrik guided for a loss of 99 cents per share on sales of $1.184 billion at the midpoint.
Rubrik holds a Composite Rating of 81 while the Relative Strength Rating is an outstanding 96. The EPS Rating lags at 59. Rubrik stock was also a recent IBD Stock Of The Day.
Rubrik Stock: In Base After 198% Gain
Shares started trading on the New York Stock Exchange on April 25, 2024, for an initial offering price of $32. Shares gained 198% since they started trading, based on Wednesday's closing price.
The stock has formed a late-stage cup base that may not net the higher gains that early-stage bases do. The buy point is the stock's all-time high.
Mutual funds own 50% of outstanding shares. More funds have been net buyers of the stock over the past three quarters. Rubrik's Accumulation/Distribution Rating is a neutral C and indicates that funds have been neither buyers nor sellers over the recent 13 weeks.
In the Investor's Business Daily's mutual fund index, the Federated Hermes Kaufmann Small Cap Fund (FKASX), the Invesco Discovery Fund (OPOCX), the Alger Small Cap Growth Fund (ALSCX) and the Fidelity Contrafund (FCNTX) hold shares of Rubrik stock.
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