Datadog (DDOG) is a Top-Ranked Momentum Stock: Should You Buy?

Zacks Equity Research
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Datadog (DDOG)

Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations including public cloud, private cloud, on-premise hardware, databases and third-party software.

DDOG boasts a Momentum Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Datadog has seen some interesting price action recently; the stock is up 13.3% over the past one week and up 9.9% over the past four weeks. And in the last one-year period, DDOG has gained 16.9%. As for the stock's trading volume, 6,486,873 shares on average were traded over the last 20 days.

Momentum investors also pay close attention to a company's earnings. For DDOG, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.23 to $0.72 per share for 2022. DDOG boasts an average earnings surprise of 129.2%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding DDOG to their portfolios.


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