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Zendesk Earns Technical Rating Upgrade

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On Monday, Zendesk ( ZEN ) earned a positive adjustment to its Relative Strength ( RS ) Rating , from 65 to 74.

[ibd-display-video id=2368044 width=50 float=left autostart=true] IBD's proprietary RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.

History shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 in the early stages of their moves. See if Zendesk can continue to show renewed price strength and hit that benchmark.

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Zendesk is now considered extended and out of buy range after clearing a 29.67 buy point in a second-stage cup with handle . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.

The company reported 16% earnings growth last quarter. Sales gains came in at 36%. Keep an eye out for the company's next round of numbers on or around Nov. 1.

Zendesk holds the No. 33 rank among its peers in the Computer Software-Enterprise industry group. LogMeIn ( LOGM ), ServiceNow ( NOW ) and Paycom Software ( PAYC ) are among the top 5 highly rated stocks 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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