Datadog (DDOG) Stock Falls Amid Market Uptick: What Investors Need to Know
Datadog (DDOG) ended the recent trading session at $120.19, demonstrating a -0.82% swing from the preceding day's closing price. This change lagged the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 5.69% over the past month, outpacing the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 65.38% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $566.7 million, up 20.73% from the prior-year quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Datadog. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.54% lower. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 70.89. This represents a premium compared to its industry's average Forward P/E of 34.02.
One should further note that DDOG currently holds a PEG ratio of 2.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DDOG's industry had an average PEG ratio of 1.65 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 29, which puts it in the top 12% 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.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
