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Here's Why Datadog (DDOG) Fell More Than Broader Market
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Datadog (DDOG - Free Report) closed at $122.65 in the latest trading session, marking a -0.76% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
Shares of the data analytics and cloud monitoring company have depreciated by 9.23% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is predicted to post an EPS of $0.34, indicating a 21.43% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $590.1 million, up 22.5% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.42 per share and a revenue of $2.57 billion, indicating changes of +7.58% and +20.73%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 195.21% decrease. As of now, Datadog holds a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 87.25. This signifies a premium in comparison to the average Forward P/E of 30.85 for its industry.
Meanwhile, DDOG's PEG ratio is currently 10.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Datadog (DDOG) Fell More Than Broader Market
Datadog (DDOG - Free Report) closed at $122.65 in the latest trading session, marking a -0.76% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.3%.
Shares of the data analytics and cloud monitoring company have depreciated by 9.23% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is predicted to post an EPS of $0.34, indicating a 21.43% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $590.1 million, up 22.5% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.42 per share and a revenue of $2.57 billion, indicating changes of +7.58% and +20.73%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 195.21% decrease. As of now, Datadog holds a Zacks Rank of #3 (Hold).
Digging into valuation, Datadog currently has a Forward P/E ratio of 87.25. This signifies a premium in comparison to the average Forward P/E of 30.85 for its industry.
Meanwhile, DDOG's PEG ratio is currently 10.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.