Apple (AAPL) may be working on a new base, but four hot software stocks that are in or near buy range could be worth watching as well: RingCentral (RNG), Paycom Software (PAYC), Okta (OKTA) and Apptio (APTI).
Hot Software Stocks
Paycom Software stock leads these software names with an IBD Composite Rating of 98 out of 99, while RingCentral stock earns a 97. Apptio stock has an 84 while Okta stock lags with a 78. The software stock sector currently ranks No. 1 out of the 33 sectors IBD tracks, and has collectively seen a more than 30% gain since Jan. 1.
Meanwhile, Apple stock’s Composite Rating sits at a 92.
RingCentral Stock
RingCentral stock is trading in buy range from a double-bottom base with an 80.80 buy point. A double-bottom base gets its name from its “W” shape. The second leg down should be lower than the first, and then the buy point is 10 cents higher from the middle peak.
The business communications software firm broke out last Tuesday, but hasn’t seen considerably strong volume. Strong volume on a breakout is a bullish signal, suggesting that big institutions are buying up shares.
RingCentral stock fell as low as 80.35 intraday Monday, briefly undercutting the buy point, but rebounded to close down just 5 cents at 81.50.
Paycom Stock
Cloud-based payroll and human resources software firm Paycom is working on its own double-bottom base. The entry point is 115.64. Paycom stock rose 0.9% to 112.75 on Monday.
Okta Stock
Okta stock is working on a cup base with a 61.10 entry. The cybersecurity software company’s shares rose 1.5% to 57.15 on Monday. The left-side high of the base was formed because of a big bearish reversal after the company’s last quarterly earnings report. But shares found support at their 50-day moving average.
Apptio Stock
And Apptio stock is nearing a potential 38.45 buy point after five consecutive weeks of closing in a tight range. But that buy point would be an add-on entry for existing shareholders. With that, you want to buy as close to the buy point as possible. Apptio stock climbed a penny to 37.48 on Monday.
Apptio, which specializes in cloud-based software-as-a-service applications for technology business management, could form a flat base after a few more sessions of trade.
Apple Stock
Elsewhere in the tech sector, Apple stock is working on a flat base and is trading just below the 194.30 buy point. Shares inched up 0.1% to 191.61 Monday.
While Apple stock has gotten support at the 50-day line as it forms the base, institutional support is not currently strong. Apple’s Accumulation/Distribution Rating is a C-, while an A equals heavy buying by institutions and E equals heavy selling.
