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Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
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Datadog (DDOG - Free Report) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 6.57% over the past month. This has outpaced the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 47.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $523.3 million, up 19.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $2.06 billion. These totals would mark changes of +34.69% and +22.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 107.14% higher. Datadog currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 73.44. Its industry sports an average Forward P/E of 38.78, so we one might conclude that Datadog is trading at a premium comparatively.
Meanwhile, DDOG's PEG ratio is currently 2.9. 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 1.65 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 87, which puts it in the top 35% 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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Datadog (DDOG) Outpaces Stock Market Gains: What You Should Know
Datadog (DDOG - Free Report) closed at $97.66 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 6.57% over the past month. This has outpaced the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from Datadog as it approaches its next earnings release. The company is expected to report EPS of $0.34, up 47.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $523.3 million, up 19.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.32 per share and revenue of $2.06 billion. These totals would mark changes of +34.69% and +22.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 107.14% higher. Datadog currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 73.44. Its industry sports an average Forward P/E of 38.78, so we one might conclude that Datadog is trading at a premium comparatively.
Meanwhile, DDOG's PEG ratio is currently 2.9. 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 1.65 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 87, which puts it in the top 35% 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.