On Thursday, Datadog earned an upgrade to its Relative Strength (RS) Rating, from 88 to 92.
IBD's proprietary rating tracks share price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
Decades of market research shows that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating as they begin their largest runs.
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The stock, which is on the IBD Big Cap 20 , is now considered extended and out of buy range after clearing a 138.61 buy point in a first-stage consolidation. 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 moving average.
The company showed 2% earnings growth in its most recent report. Revenue increased 26%.
Datadog holds the No. 10 rank among its peers in the Computer Software-Enterprise industry group. Samsara, Klaviyo and Cloudflare are among the top 5 highly rated stocks within the group.
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