Snowflake stock saw an improvement in its IBD SmartSelect Composite Rating Wednesday, from 94 to 96. The computer software stock sports a 94 Relative Strength Rating.
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The new score means the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they begin to launch a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Is Snowflake Stock A Buy?
Snowflake stock is currently extended beyond a proper buy zone after breaking out from a 194.40 entry in a cup without handle. Look for the stock to pull back into another pattern or base for an alternate buying opportunity.
One weak spot is the company's 48 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.
Q1 Earnings Swing Up
The company reported a 71% earnings gain for Q1. That marks two straight reports with rising EPS growth. Revenue growth came in at 26%, down from 27% in the previous quarter.
Snowflake stock earns the No. 6 rank among its peers in the Computer Software-Enterprise industry group. Palantir Technologies, Cloudflare and ServiceNow are among the top 5 highly-rated stocks 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.
