To The Moon

$Apple(AAPL)$

$Datadog(DDOG)$

Apple Stock

An important consideration is that these stocks all boast impressive relative strength.

Check out IBD Stock Lists and other IBD content to find dozens more of the best stocks to buy or watch.

Apple Stock

AAPL stock is trading below a consolidation pattern entry. The buy point here is 183.04 , according to MarketSmith analysis.

An important short-term goal for AAPL stock will be retaking its 50-day line. It fell below the key benchmark just over a week ago. It just got strong support at its 200-day moving average.

Nevertheless, Apple stock has just seen its relative strength line hit new highs. This is a positive, but also a sign of how bad the broader market sell-off has been. Stocks with strong RS lines during choppy markets can be among the first to break out during an uptrend.

Apple stock has seen its Composite Rating shoot up to a very strong 93 out of 99. Apple became the first company to reach a market capitalization of $3 trillion last month, though it has now backed off this level.

The IBD Stock Checkup tool shows earnings growth is bouncing back in recent quarters following the Covid-19 pandemic. Apple stock got a boost after reporting earnings for Q1 of fiscal 2022.

It was the firm's best ever quarter for revenue, with all categories excluding iPads coming in above views.

Datadog Stock

Datadog stock has a high price-to-earnings ratio of 311, which could be problematic amid a rising rate environment. As rates rise, investors discount future earnings more.

But that has not dissuaded institutional investors from buying shares. In recent weeks they have been snapping up DDOG stock, which is reflected in its Accumulation/Distribution Rating of B+.

Datadog has a 96 RS Rating, putting it in the top 4% of stocks in terms of market performance, and a 94 out of a best-possible 99 Composite Rating. It is the reigning champion in IBD's Computer Software-Enterprise group.

Datadog earnings shot up 233% and revenue 84% to $326.2 million. For both, it was the third straight quarter of accelerating growth. An expanding partnership with Amazon Web Services, the cloud computing unit of Amazon.com (AMZN), is boosting growth.

The company also guided up on 2022 revenue.

The Stock Checkup shows Datadog now has an EPS Rating of 70. Earnings have been accelerating.

Started in 2010, Datadog operates a monitoring and analytics platform for software developers and information-technology departments.

Goldman has just added Datadog stock to its conviction-buy list. It has given it a 250 target. It believes growth can "continue to outpace the overall observability market as cloud adoption remains nascent."