Back to top

Image: Bigstock

Datadog (DDOG) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

In the latest market close, Datadog (DDOG - Free Report) reached $105, with a -1.24% movement compared to the previous day. This change lagged the S&P 500's 1.47% gain on the day. Meanwhile, the Dow experienced a rise of 1.39%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Shares of the data analytics and cloud monitoring company witnessed a gain of 12.54% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.42% and the S&P 500's loss of 0.47%.

The upcoming earnings release of Datadog will be of great interest to investors. The company's earnings report is expected on May 6, 2025. The company is predicted to post an EPS of $0.42, indicating a 4.55% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $739.37 million, up 20.96% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.68 per share and a revenue of $3.19 billion, indicating changes of -7.69% and +18.7%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. At present, Datadog boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Datadog is at present trading with a Forward P/E ratio of 63.11. This represents a premium compared to its industry's average Forward P/E of 26.11.

Investors should also note that DDOG has a PEG ratio of 7.53 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 had an average PEG ratio of 2.25 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 43% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Datadog, Inc. (DDOG) - free report >>

Published in