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Here's Why Datadog (DDOG) Fell More Than Broader Market
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Datadog (DDOG - Free Report) ended the recent trading session at $122.41, demonstrating a -2.46% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 10.39% in the past month. In that same time, the Computer and Technology sector gained 2.62%, while the S&P 500 gained 2.06%.
Market participants will be closely following the financial results of Datadog in its upcoming release. It is anticipated that the company will report an EPS of $0.55, marking a 12.24% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $914.6 million, indicating a 23.97% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2 per share and a revenue of $3.39 billion, representing changes of +9.89% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.61% higher. Currently, Datadog is carrying a Zacks Rank of #4 (Sell).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 55.59. This valuation marks a premium compared to its industry average Forward P/E of 23.95.
It's also important to note that DDOG currently trades at a PEG ratio of 4.81. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) ended the recent trading session at $122.41, demonstrating a -2.46% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1%.
Coming into today, shares of the data analytics and cloud monitoring company had lost 10.39% in the past month. In that same time, the Computer and Technology sector gained 2.62%, while the S&P 500 gained 2.06%.
Market participants will be closely following the financial results of Datadog in its upcoming release. It is anticipated that the company will report an EPS of $0.55, marking a 12.24% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $914.6 million, indicating a 23.97% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2 per share and a revenue of $3.39 billion, representing changes of +9.89% and 0%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.61% higher. Currently, Datadog is carrying a Zacks Rank of #4 (Sell).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 55.59. This valuation marks a premium compared to its industry average Forward P/E of 23.95.
It's also important to note that DDOG currently trades at a PEG ratio of 4.81. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.