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Datadog (DDOG) Gains As Market Dips: What You Should Know

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Datadog (DDOG) closed at $91.09 in the latest trading session, marking a +0.86% move from the prior day. This move outpaced the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the data analytics and cloud monitoring company had gained 5.24% over the past month, outpacing the Computer and Technology sector's loss of 2.49% and the S&P 500's loss of 3.32% in that time.

Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. The company is expected to report EPS of $0.15, up 66.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $378.37 million, up 62.01% from the year-ago period.

DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $1.61 billion. These results would represent year-over-year changes of +50% and +56.8%, respectively.

It is also important to note the recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.17% higher. Datadog currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 125. This represents a premium compared to its industry's average Forward P/E of 40.05.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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