New IPO stock leader Ping Identity (PING) is one of the top IPO stocks to watch. The cybersecurity leader is trying to break out past its first buy point since the company's Sept. 19 debut on the NYSE. The company is one of the latest additions to IBD's IPO Leaders list.
XIPO Stocks To Watch: Ping Identity
Ping Identity is a leader in the zero-trust cybersecurity space, a new security method that treats users inside a network with as much suspicion as those outside of it. Ping's products authenticate the identity of network users and ensure their devices are free of malware before allowing them access to applications. The company competes with Okta (OKTA) and CyberArk (CYBR), among others. Key customers include Applied Materials (AMAT) and Netflix (NFLX).
According to the company, Ping Identity's products "prevent security breaches, increase employee and partner productivity, and provide personalized customer experiences." The company uses artificial intelligence and machine learning to apply multifactor authentication methods.
In the most recent quarter — reported Nov. 14 — earnings and sales grew 450% and 45%, respectively. In 2018, the company lost 8 cents per share. But the firm is on pace to turn profitable in 2019. The consensus estimate is for a profit of 46 cents this year. With a market capitalization of about $1.5 billion, the small-cap stock will trade with a high degree of volatility.
According to IBD Stock Checkup, Ping stock has a poor 53 out of a highest-possible 99 IBD Composite Rating. The Composite Rating is designed to help investors easily measure a stock's fundamental and technical metrics.
Ping Stock Attempts Breakout
IPO stock Ping Identity debuted on Sept. 19 with an initial public offering price of 15. The stock closed its first trading session at 20.11, a strong advance of 34%. But the stock's post-IPO gains proved to be short-lived. From its high on Sept. 20 to its low on Oct. 18, the cybersecurity stock slid as much as 28%. On Nov. 14, the stock surged 13% on the company's better-than-expected earnings. The move helped complete the right side of a cup base with a 21.10 buy point.
On Nov. 21, the stock surged to break out above the entry with a surge of more than 11% to a high of 21.50. But the stock closed below the buy point where it remains.
The stock's relative strength line is at new highs, indicating stock-market-beating performance. The RS line measures a stock's price performance vs. the broad market.
With the stock market in a confirmed uptrend, investors should continue to be on the hunt for top stocks breaking out past proper buy points in heavy volume. For more top stocks, check out IBD stock idea lists, like Stocks Near A Buy Zone.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.
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