Datadog (DDOG) Increases Despite Market Slip: Here's What You Need to Know
Datadog (DDOG) closed the most recent trading day at $126.03, moving +1.81% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.
The data analytics and cloud monitoring company's stock has climbed by 1.13% 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 1.2%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is scheduled to release its earnings on February 13, 2024. In that report, analysts expect Datadog to post earnings of $0.43 per share. This would mark year-over-year growth of 65.38%. At the same time, our most recent consensus estimate is projecting a revenue of $566.7 million, reflecting a 20.73% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.54% decrease. At present, Datadog boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is presently being traded at a Forward P/E ratio of 72.42. This represents a premium compared to its industry's average Forward P/E of 33.93.
One should further note that DDOG currently holds a PEG ratio of 2.54. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.74.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
