On Wednesday, DigitalOcean cleared a key performance benchmark, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 81, up from 76 the day before.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains often have an RS Rating north of 80 as they begin their biggest runs.
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DigitalOcean is within a buy range after moving past a 41.37 entry in a double bottom. The proper buying range extends to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity.
Earnings growth rose in the company's most recent report from 9% to 18%, but revenue fell from 13% to 12%. The next quarterly numbers are expected on or around Feb. 25.
DigitalOcean holds the No. 18 rank among its peers in the Computer Software-Enterprise industry group. Enfusion, Samsara and Klaviyo are among the top 5 highly rated stocks within the group.
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