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Carbonite Joins Elite List Of Stocks With 95-Plus Composite Rating

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Carbonite ( CARB ) saw its IBD SmartSelect Composite Rating jump to 97 Thursday, up from 65 the day before.

[ibd-display-video id=2102289 width=50 float=left autostart=true] The new score means the company is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The best stocks tend to have a 95 or better grade as they kick off a significant move.

Carbonite is currently forming a consolidation , with a 27.10 entry. Look for the stock to break out in heavy trade at least 40% higher than normal. Understand that it's a thinly traded stock, with average daily dollar volume under $8 million. Such stocks may show wider daily or weekly fluctuations than stocks with greater liquidity.

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One weak spot is the company's 79 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 Q4, the company posted 150% earnings growth. It has now posted accelerating EPS growth for three consecutive quarters. Revenue growth fell to 15%, down from 19% in the previous quarter.

Carbonite holds the No. 2 rank among its peers in the Computer Software-Storage industry group. ( SGH ) is the top-ranked stock within the group.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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