Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
Datadog (DDOG) closed the most recent trading day at $67.44, moving +1.89% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 17.22% over the past month. This has lagged the Computer and Technology sector's gain of 5.82% and the S&P 500's loss of 1.21% in that time.
Datadog will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.23, down 4.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $468.13 million, up 28.95% from the prior-year quarter.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.36%, respectively.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.05% lower within the past month. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 62.94. This valuation marks a premium compared to its industry's average Forward P/E of 41.67.
It is also worth noting that DDOG currently has a PEG ratio of 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% 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
