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Why the Market Dipped But Datadog (DDOG) Gained Today
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Datadog (DDOG - Free Report) ended the recent trading session at $123.45, demonstrating a +0.64% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq decreased by 0.42%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 5.17% over the past month. This has lagged the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67% in that time.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 21.43% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $590.1 million, up 22.5% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.42 per share and a revenue of $2.57 billion, representing changes of +7.58% and +20.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 moved 9.15% lower. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 86.6. Its industry sports an average Forward P/E of 30.57, so one might conclude that Datadog is trading at a premium comparatively.
Investors should also note that DDOG has a PEG ratio of 10.14 right now. 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 1.84 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Datadog (DDOG) Gained Today
Datadog (DDOG - Free Report) ended the recent trading session at $123.45, demonstrating a +0.64% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq decreased by 0.42%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 5.17% over the past month. This has lagged the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67% in that time.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 21.43% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $590.1 million, up 22.5% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.42 per share and a revenue of $2.57 billion, representing changes of +7.58% and +20.73%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 moved 9.15% lower. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 86.6. Its industry sports an average Forward P/E of 30.57, so one might conclude that Datadog is trading at a premium comparatively.
Investors should also note that DDOG has a PEG ratio of 10.14 right now. 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 1.84 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.