JFrog is forming a cup base with a buy point of 48.81. On Feb. 15, shares gapped up in the strongest volume in at least one year following a bullish earnings report. FROG stock is today's selection for IBD 50 Stocks To Watch.
According to IBD MarketSurge, this is a favorable second-stage base.
Sales growth has been steady, ranging from 23% to 41% over the past eight quarters, while earnings grew between 1 cent and 19 cents, except for a loss in Q2 of 2022.
Earnings grew from 4 cents in 2022 to 51 cents in 2023. Wall Street analysts estimate 2024 earnings of 60 cents per share, or an 18% increase, improving to 68 cents per share, or 13% year over year, for 2025.
In the fourth quarter, sales grew 27% to $97.3 million while earnings per share of 19 cents shot up 375% from the prior year's quarter.
The company gave first-quarter sales guidance of $98.5 million, or a 23% growth at the midpoint, and earnings forecast of 14 cents per share. That suggests a growth of 139%. For the full year, JFrog sees sales of $426 million and earnings of 59 cents per share.
JFrog has a Composite Rating of 95 and EPS Rating of 81. The Relative Strength Rating of 95 also shows market leadership.
FROG Stock Outperforms S&P 500
The company provides a platform to supply and manage software for businesses. It helps developers connect with the people who deploy the software across organizations.
The stock has an Accumulation/Distribution Rating of B+. Mutual funds own 70% of shares outstanding. An increasing number of funds have been net buyers of the stock over the past five quarters. The Lord Abbett Developing Growth Fund (LAGWX) and the Invesco Discovery Fund (OPOCX) hold shares of FROG stock.
Among exchange traded funds, the WisdomTree Cloud Computing Fund and the iShares MorningStar Small Cap Growth ETF hold JFrog.
The stock went public on the Nasdaq in September 2020 at an initial listing price of 44. Shares popped but were at an all-time low of 16.36 by May 2022. The stock gained 62% in 2023 and is up more than 25% so far this year. By comparison, the S&P 500 gained 24% in 2023 and is up 10% so far this year.
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