Datadog (DDOG - Free Report) closed at $89.38 in the latest trading session, marking a +0.95% move from the prior day. This move outpaced the S&P 500's daily loss of 0.46%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 6.09% over the past month, outpacing the Computer and Technology sector's gain of 2.23% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from DDOG as it approaches its next earnings report date. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $144.25 million, up 50.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.13 per share and revenue of $570.72 million. These totals would mark changes of +1400% and +57.32%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DDOG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DDOG is currently a Zacks Rank #2 (Buy).
In terms of valuation, DDOG is currently trading at a Forward P/E ratio of 708.32. Its industry sports an average Forward P/E of 82.11, so we one might conclude that DDOG is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.