In the latest trading session, Datadog (DDOG) closed at $90.72, marking a -1.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq lost 0.81%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 3.52% over the past month. This has lagged the Computer and Technology sector's gain of 7.91% and the S&P 500's gain of 5.15% in that time.
DDOG will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.05 per share and revenue of $562.30 million, which would represent changes of +600% and +55%, respectively, from the prior year.
Any recent changes to analyst estimates for DDOG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. DDOG is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DDOG currently has a Forward P/E ratio of 1939.79. For comparison, its industry has an average Forward P/E of 78.11, which means DDOG is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research