On Thursday, Datadog earned an upgrade to its Relative Strength (RS) Rating, from 78 to 81 despite the stock pricing falling this week.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary rating identifies share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
History reveals that the stocks that go on to make the biggest gains tend to have an RS Rating of above 80 in the early stages of their moves.
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The IBD Sector Leaders stock is trying to complete a consolidation with a 118.02 entry. Let's wait and see if the stock can clear the breakout price in volume at least 40% higher than normal.
Earnings growth increased in the company's most recent report from 17% to 50%, but the top line fell from 33% to 25%.
The company holds the No. 4 rank among its peers in the Computer Software-Enterprise industry group. Workday and UiPath are also among the group's highest-rated stocks.
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