The IBD SmartSelect Composite Rating for Datadog increased from 94 to 97 Thursday, and moved up one more number today to 98.
The new score tells you the company is now outperforming 97% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major moves.
Datadog stock is not currently near a proper entry. It is working on the right side of a cup without handle pattern, and is currently down after two solid up days. Look for the stock to continue to climb and then break out from the $120.85 pivot point on strong volume.
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The stock also has a 99 EPS Rating, which means its recent quarterly and annual earnings growth tops 99% of all stocks.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors, such as mutual funds and pension funds, over the last 13 weeks.
Earnings Report
The company posted a 17% EPS gain for Q1. Top line growth came in at 33%, down from 44% in the prior quarter.
Datadog holds the No. 9 rank among its peers in the Computer Software-Enterprise industry group. Salesforce, Dynatrace and ServiceNow are among the top 5 highly-rated stocks within the group.
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