Datadog (DDOG) Stock Declines While Market Improves: Some Information for Investors
Datadog (DDOG) closed at $129.18 in the latest trading session, marking a -1.49% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.23%. Elsewhere, the Dow saw an upswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.07%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 9.97% in the past month. In that same time, the Computer and Technology sector gained 11.06%, while the S&P 500 gained 5.3%.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2024. The company is forecasted to report an EPS of $0.43, showcasing a 65.38% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $566.7 million, up 20.73% from the year-ago period.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.62% upward. Datadog currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 76.63. This valuation marks a premium compared to its industry's average Forward P/E of 30.98.
Meanwhile, DDOG's PEG ratio is currently 2.69. 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. DDOG's industry had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
