Calix Stock Shows Surprising Strength After Profit, Sales Pop

This stock is on the rise with an improving technical performance according to a Relative Strength Rating.

Blog

May 10, 2023 • 2 min read

The tech stocks are gaining momentum. Calix, a broadband communications network company (CALX), is one of them. Calix stock reached a major milestone on Wednesday as its Relative strength rating soared to 82. Calix is part of the Computer Networking industry group which has a respectable ranking. IBD's list includes 197 different industry groups. This is a big improvement from the 126 ranking four weeks ago.

Calix's RS rating of 82 means that it has performed better than 82% of other stocks over the last year. Research shows that stocks with RS ratings above 80 tend to be the best to watch and buy in the beginning stages of their movements. Calix has joined this elite group.

Calix Stock has an impressive 94 Composite rating out of 99. This puts Calix in the top 6% for a composite of other fundamental and technical measures. San Jose-based company has also a strong Earnings per Share Rating of 92 and a B Standard Market Rating (sales+profits margins+returns on equity). Its B Accumulation/Distribution Rating on an A+ to E scale shows that institutions like mutual funds are buying more shares than selling.

IBD can help you make more money in stocks

Calix's stock has rebounded in the last few months from a close on March 13 at 46.97, to a close of 55.88, an increase of 0.5%, during a mixed market day. Last Thursday, it rose above the 50-day line and now trades below its 200-day. The stock may not be at an ideal buying point, but watch to see if the stock continues to grow and breaks out of a solid base.

Looking at the revenue and profit growth, it is clear that the company's earnings have been increasing for three consecutive quarters. During the same time period, sales growth also increased. It posted a 31 percent increase in earnings per share to 34 cents on the back of a 39 percent surge in revenue. The company's previous reports showed a drop of 44% in earnings year-over-year, followed by a drop of 42% and then a drop of 3%. Sales increased steadily during that period, increasing by 14%, 22%, and 37%. Calix will report its next quarter's numbers around or on April 19.

It is ranked No. 2 among its peers in the Computer-Networking industry group. The company is ranked No. 2 amongst its peers in the Computer-Networking Industry Group. Arista Networks is No. Extreme Networks and Juniper Networks round out the top five in this group.

IBD's Relative strength rating is unique and measures price performance from 1 (worst to 99 (best). The rating compares a stock's performance in the past 52 weeks to all other stocks within our database.

Receive our newsletters and more information about our products and services. Privacy Policy and Terms of Service

Follow James DeTar @URL_ on Twitter