Yahoo Finance Datadog (DDOG) Advances While Market Declines: Some Information for Investors
Datadog (DDOG) closed the latest trading day at $129.69, indicating a +0.97% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow saw a downswing of 0.12%, while the tech-heavy Nasdaq depreciated by 0.71%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 9.37% over the past month, outpacing the Computer and Technology sector's gain of 6.52% and the S&P 500's gain of 3.53% 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's earnings per share (EPS) are projected to be $0.35, reflecting a 2.78% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $622.79 million, up 22.25% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.54 per share and a revenue of $2.6 billion, representing changes of +16.67% and +22.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained steady. As of now, Datadog holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 83.22 right now. This expresses a premium compared to the average Forward P/E of 30.12 of its industry.
Meanwhile, DDOG's PEG ratio is currently 8.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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
