Snowflake saw its IBD SmartSelect Composite Rating jump to 96 Wednesday, up from 90 the day before.
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The upgrade means the stock is now outperforming 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Snowflake is now out of buy range after breaking out from a 194.40 buy point in a cup without handle.
One weak spot is the company's 47 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
In Q1, the company reported 71% EPS growth. It has now posted accelerating EPS gains for two consecutive quarters. Top line growth came in at 26%, down from 27% in the previous quarter.
Snowflake holds the No. 5 rank among its peers in the Computer Software-Enterprise industry group. Palantir Technologies is the No. 1-ranked stock within the group.
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.