We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Datadog (DDOG) Outpaced the Stock Market Today
Read MoreHide Full Article
Datadog (DDOG - Free Report) ended the recent trading session at $131.45, demonstrating a +0.64% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.24%.
The data analytics and cloud monitoring company's stock has climbed by 8.68% in the past month, falling short of the Computer and Technology sector's gain of 12.39% and outpacing the S&P 500's gain of 6.45%.
The upcoming earnings release of Datadog will be of great interest to investors. The company's earnings report is expected on February 13, 2024. The company's upcoming EPS is projected at $0.43, signifying a 65.38% increase compared to the same quarter of the previous 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.62% higher within the past month. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 76.32. This expresses a premium compared to the average Forward P/E of 31.53 of its industry.
Investors should also note that DDOG has a PEG ratio of 2.68 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.69 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank is ordered 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Datadog (DDOG) Outpaced the Stock Market Today
Datadog (DDOG - Free Report) ended the recent trading session at $131.45, demonstrating a +0.64% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.06% for the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.24%.
The data analytics and cloud monitoring company's stock has climbed by 8.68% in the past month, falling short of the Computer and Technology sector's gain of 12.39% and outpacing the S&P 500's gain of 6.45%.
The upcoming earnings release of Datadog will be of great interest to investors. The company's earnings report is expected on February 13, 2024. The company's upcoming EPS is projected at $0.43, signifying a 65.38% increase compared to the same quarter of the previous 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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.62% higher within the past month. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 76.32. This expresses a premium compared to the average Forward P/E of 31.53 of its industry.
Investors should also note that DDOG has a PEG ratio of 2.68 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.69 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank is ordered 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.