Datadog (DDOG) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Datadog (DDOG) standing at $113.02, reflecting a +0.53% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.56%.
The data analytics and cloud monitoring company's stock has dropped by 1.65% in the past month, falling short of the Computer and Technology sector's gain of 1.27% and the S&P 500's gain of 2.56%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 65.38% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $566.72 million, reflecting a 20.73% rise from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 6.81% fall in the Zacks Consensus EPS estimate. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 66.22. This expresses a premium compared to the average Forward P/E of 32.74 of its industry.
It is also worth noting that DDOG currently has a PEG ratio of 2.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.6.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
