The IBD SmartSelect Composite Rating for DigitalOcean rose from 94 to 96 Thursday.
The revised score 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 grade in the early stages of a new price run, so that's an important benchmark to look for when looking for the best stocks to buy and watch.
DigitalOcean is currently forming a double bottom, with a 41.37 buy point. See if the stock can break out in heavy trade at least 40% above average.
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The stock has a 94 EPS Rating, meaning its recent quarterly and annual earnings growth is outpacing 94% 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.
In Q3, the company posted 18% EPS growth. Top line growth fell to 12%, down from 13% in the prior quarter.
DigitalOcean earns the No. 17 rank among its peers in the Computer Software-Enterprise industry group. Enfusion, Klaviyo and Cloudflare are among the top 5 highly-rated stocks within the group.
