Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Datadog (DDOG) ending at $123.47, denoting a +1.36% adjustment from its last day's close. This change outpaced the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Shares of the data analytics and cloud monitoring company have depreciated by 4.58% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company is expected to report EPS of $0.34, up 21.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $590.1 million, up 22.5% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.42 per share and revenue of $2.57 billion. These results would represent year-over-year changes of +7.58% and +20.73%, respectively.
It is also important to note the recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 9.15% lower. Datadog presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 86. This valuation marks a premium compared to its industry's average Forward P/E of 30.05.
One should further note that DDOG currently holds a PEG ratio of 10.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 37, this industry ranks in the top 15% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
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
