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DigitalOcean (DOCN) saw a positive improvement to its Relative Strength (RS) Rating on Thursday, rising from 74 to 86. IBD's unique RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against other publicly traded companies. History shows that the stocks that go on to make the biggest gains tend to have an 80 or higher RS Rating in the early stages of their moves. DigitalOcean is now considered extended and out of buy range after clearing a 40.92 buy point in a first-stage cup with handle. 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 line. While earnings-per-share growth fell in the company's most recent quarterly report from 23% to 4%, revenue grew 16%, up from 14% in the previous report. The company earns the No. 9 rank among its peers in the Computer Software-Enterprise industry group. Palantir Technologies (PLTR), Snowflake (SNOW) and Cloudflare (NET) are among the top 5 highly rated stocks within the group. This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
