Datadog (DDOG) Stock Falls Amid Market Uptick: What Investors Need to Know
Datadog (DDOG) closed the most recent trading day at $122.19, moving -0.32% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
Shares of the data analytics and cloud monitoring company witnessed a loss of 0.83% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.21% and the S&P 500's gain of 2.48%.
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%. Simultaneously, our latest consensus estimate expects the revenue to be $566.7 million, showing a 20.73% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.08% higher. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 71.62. For comparison, its industry has an average Forward P/E of 34.62, which means Datadog is trading at a premium to the group.
It's also important to note that DDOG currently trades at a PEG ratio of 2.51. 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 industry currently had an average PEG ratio of 1.78 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 59, which puts it in the top 24% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
