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Datadog (DDOG) Dips More Than Broader Markets: What You Should Know

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Datadog (DDOG - Free Report) closed at $107.72 in the latest trading session, marking a -0.9% move from the prior day. This change lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.07%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 22.29% over the past month. This has outpaced the Computer and Technology sector's gain of 6.18% and the S&P 500's gain of 3.21% in that time.

Wall Street will be looking for positivity from DDOG as it approaches its next earnings report date. On that day, DDOG is projected to report earnings of $0.01 per share, which would represent a year-over-year decline of 66.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $163.32 million, up 43.72% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.17 per share and revenue of $589.34 million. These totals would mark changes of +1800% and +62.45%, respectively, from last year.

Any recent changes to analyst estimates for DDOG should also be noted by investors. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. DDOG is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that DDOG has a Forward P/E ratio of 623.12 right now. This represents a premium compared to its industry's average Forward P/E of 80.15.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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