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Datadog (DDOG) Advances But Underperforms Market: Key Facts
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Datadog (DDOG - Free Report) ended the recent trading session at $122.49, demonstrating a +0.01% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 9.23% over the past month, outpacing the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71% in that time.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 65.38% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $566.7 million, indicating a 20.73% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.53 per share and a revenue of $2.11 billion, indicating changes of +56.12% and +25.69%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.48% upward. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 80.17. This expresses a premium compared to the average Forward P/E of 39.53 of its industry.
We can also see that DDOG currently has a PEG ratio of 2.81. 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 1.81 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 31, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Datadog (DDOG) Advances But Underperforms Market: Key Facts
Datadog (DDOG - Free Report) ended the recent trading session at $122.49, demonstrating a +0.01% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, added 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 9.23% over the past month, outpacing the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71% in that time.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.43, indicating a 65.38% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $566.7 million, indicating a 20.73% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.53 per share and a revenue of $2.11 billion, indicating changes of +56.12% and +25.69%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 11.48% upward. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 80.17. This expresses a premium compared to the average Forward P/E of 39.53 of its industry.
We can also see that DDOG currently has a PEG ratio of 2.81. 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 1.81 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 31, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.