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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Datadog (DDOG - Free Report) closed at $95.63, marking a -0.41% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 10.81% in the past month. In that same time, the Computer and Technology sector gained 9.32%, while the S&P 500 gained 3.98%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. In that report, analysts expect Datadog to post earnings of $0.28 per share. This would mark year-over-year growth of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $500.37 million, up 23.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $2.09 billion, which would represent changes of +19.39% and +24.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% higher. Datadog currently has a Zacks Rank of #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 82.22. This represents a premium compared to its industry's average Forward P/E of 41.35.
We can also see that DDOG currently has a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Datadog (DDOG - Free Report) closed at $95.63, marking a -0.41% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 10.81% in the past month. In that same time, the Computer and Technology sector gained 9.32%, while the S&P 500 gained 3.98%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. In that report, analysts expect Datadog to post earnings of $0.28 per share. This would mark year-over-year growth of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $500.37 million, up 23.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $2.09 billion, which would represent changes of +19.39% and +24.92%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.55% higher. Datadog currently has a Zacks Rank of #3 (Hold).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 82.22. This represents a premium compared to its industry's average Forward P/E of 41.35.
We can also see that DDOG currently has a PEG ratio of 3.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.