Software was a leading sector last year, including Varonis Systems stock. The New York-based firm makes software to analyze, manage and map unstructured data. The software sector consolidated early this year, including Varonis, but it may be poised for another run. On Thursday, the Relative Strength Rating for Varonis Systems (VRNS), whose stock is up 256% since the Covid market collapse in March 2020, climbed to a new percentile, rising to 82, up from 70.
The 82 RS Rating means that Varonis Systems stock has outperformed 82% of all stocks over the past year. It’s a significant move because market history reveals that the top-performing stocks often have an RS Rating of over 80 in the early stages of their moves.
Varonis Systems Stock In Resurgent Group
Software maker Varonis Systems stock may get a boost along with the overall sector. IBD Stock Market Today Thursday said, “A number of other software names have already broken out in the last couple of weeks, including Adobe stock,” which reported earnings that easily topped estimates late Thursday.
Top and bottom line growth for Varonis moved higher last quarter. Last quarter, Varonis lost 8 cents a share, much improved from its 19-cent a share the same quarter last year. In the two quarters prior to last quarter, Varonis’ EPS rose 140%, then soared 460%. Sales last quarter grew 38% to $74.8 million, continuing a trend that’s lasted at least four quarters of double-digit sales growth.
Investors seem pleased. Varonis Systems stock has climbed 36% in the last five weeks, from a close at 42.74 on May 11 to a close Thursday at 58.11, up nearly 5% for the day. It’s up 256% from a 16.32 low in mid-March 2020.
Varonis Systems stock is not currently near a potential buy zone, though it could be climbing the right side of a cup base. See if the stock goes on to form a base that could kick off a new climb, such as a three-weeks-tight pattern or a rebound off its 50-day or 200-day line.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price performance over the last 52 weeks holds up against all the other stocks in our database.
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