Yahoo Finance Zacks Investment Ideas feature highlights: Datadog, Duolingo and Pinterest
For Immediate Release
Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS.
Momentum Masters: 3 Mid-Cap Stocks Investors Can Buy Now
In a stock market that refuses to go down, mid-cap technology stocks offer some of the most compelling return opportunities available to investors. These companies are bringing unique and innovative solutions to their markets, enjoy tremendous growth rates, and have the potential to become truly revolutionary companies.
These stocks present opportunities for long-term investments based on value-creating solutions and promising business models as well as short-term trading opportunities driven by powerful momentum driving these stocks higher.
In this article, I will share three such stocks that enjoy considerable price momentum and top Zacks Ranks.
Datadog
Datadog is a US-based software company that offers a cloud-based monitoring and analytics platform. The platform allows organizations to gain real-time visibility into the performance of their applications and infrastructure. Datadog's solutions collect, analyze, and visualize data from various sources, helping IT and development teams monitor and optimize the performance, security, and reliability of their digital operations.
Datadog has experienced some significant revisions higher to its earnings estimates, giving it a Zacks Rank #2 (Buy) rating. Current quarter earnings estimates have increased by 26.5% and are projected to climb 65.4% YoY to $0.43 per share.
FY23 earnings have been upgraded by 14.4% and are forecast to grow 54.1% YoY to $1.51 per share. FY23 sales are expected to show a 25.7% YoY increase to $2.11 billion.
Since its massive earnings beat, and gap up, Datadog stock has been on fire, trading from one breakout to the next. Over the last week, DDOG has been building out another convincing bull flag. If the price can trade above the $112 level, it would signal a breakout and likely continue to new yearly highs.
On the flip side, if the stock loses support at $108.70, the setup is invalidated, and investors may want to wait for another opportunity.
Duolingo
Duolingo is the world's most popular language learning app with over 13 million active users. It is an educational technology company that creates learning apps and language certifications. Duolingo offers courses to learn over 40 different languages as well as courses on music and math. DUOL went public in June 2021.
Earnings estimates for Duolingo have snapped higher over the last week giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings estimates have increased from -$0.02 to $0.16 and FY23 from -$0.07 to $0.25.
It is a huge development to see the company flip to net profitable and should draw a steady stream of new investors.
DUOL too has a compelling technical momentum trade setup. Over the last two weeks, the price has been forming a bull flag, which could propel the stock significantly higher. If DUOL can trade above $218.50, it would confirm a technical breakout. However, below $203.75 and the setup breaks down, and should be avoided.
Pinterest is a social media and visual discovery platform. It allows users to discover and save ideas for various interests, including home decor, fashion, recipes, travel, and more, by creating digital collections known as "boards." Users can explore and share images and content they find inspiring or interesting. Pinterest serves as a platform for both personal inspiration and business promotion, with many businesses and content creators using it to reach and engage with their target audiences through visual content. PINS has 482 million monthly active users and generates revenue through ad sales.
Analysts have unanimously upgraded Pinterest's earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings are expected to grow 72.4% YoY and FY23 are projected to climb 69.4% YoY.
Based on these revised earnings estimates, Pinterest stock is trading like a value investment. With a forward earnings multiple of 30.5x, and EPS forecast to grow at 36% annually over the next three years, it has a PEG ratio of 0.85x. It is a rare occasion to be able to pick up a tech company like PINS at such a discount.
Furthermore, the technical setup offers a compelling risk-reward opportunity. If PINS can move above the $32 level, it should stage a powerful breakout. Alternatively, below $31 and it may trade lower first.
Bottom Line
By exploring mid-cap technology companies, investors can uncover stock market gems, which have the potential to grow into behemoths. Additionally, they can be fantastic trading vehicles for those investors looking for more tactical trading opportunities as their high growth rates invite momentum traders.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
