On Thursday, Confluent (CFLT) stock got an upgrade for its IBD SmartSelect Composite Rating from 94 to 96.

The upgrade means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher score in the early stages of a new price run, so that's a good starting point when looking for the best stocks to buy and watch.

Confluent broke out earlier, but is now trading about -4% below the prior 29.72 entry from a cup without handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form.

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The tech stock earns an 81 EPS Rating, meaning its recent quarterly and longer-term annual earnings growth is outpacing 81% of all stocks.

Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.

Confluent Earnings

The computer database company posted a 400% earnings-per-share gain for Q3. Sales growth increased 25%, up from 24% in the prior report. That marks one quarter of increasing revenue gains.

Confluent stock earns the No. 2 rank among its peers in the Computer Software-Database industry group. Commvault Systems (CVLT) is the No. 1-ranked stock within the group.

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