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Datadog (DDOG) Increases Despite Market Slip: Here's What You Need to Know
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Datadog (DDOG - Free Report) closed the most recent trading day at $261.09, moving +1.67% from the previous trading session. 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 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 12.96% over the past month, outpacing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company is forecasted to report an EPS of $0.58, showcasing a 26.09% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 30.22% growth compared to the corresponding quarter of the prior year.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $2.41 per share and revenue of $4.34 billion. These results would represent year-over-year changes of +17.56% and +26.62%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 5.3% rise in the Zacks Consensus EPS estimate. Datadog is holding a Zacks Rank of #1 (Strong Buy) right now.
With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 106.4. This denotes a premium relative to the industry average Forward P/E of 19.93.
It's also important to note that DDOG currently trades at a PEG ratio of 6.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
View the Zacks #1 Rank List
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Datadog (DDOG) Increases Despite Market Slip: Here's What You Need to Know
Datadog (DDOG - Free Report) closed the most recent trading day at $261.09, moving +1.67% from the previous trading session. 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 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 12.96% over the past month, outpacing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company is forecasted to report an EPS of $0.58, showcasing a 26.09% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.08 billion, indicating a 30.22% growth compared to the corresponding quarter of the prior year.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $2.41 per share and revenue of $4.34 billion. These results would represent year-over-year changes of +17.56% and +26.62%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 5.3% rise in the Zacks Consensus EPS estimate. Datadog is holding a Zacks Rank of #1 (Strong Buy) right now.
With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 106.4. This denotes a premium relative to the industry average Forward P/E of 19.93.
It's also important to note that DDOG currently trades at a PEG ratio of 6.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.