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Datadog (DDOG) Dips More Than Broader Market: What You Should Know
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In the latest close session, Datadog (DDOG - Free Report) was down 1.37% at $283.34. The stock's performance was behind the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Shares of the data analytics and cloud monitoring company have appreciated by 24.88% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. In that report, analysts expect Datadog to post earnings of $0.64 per share. This would mark year-over-year growth of 16.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 28.88% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.52 per share and revenue of $4.46 billion, indicating changes of +22.93% and +30.23%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained unchanged. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Datadog is holding a Forward P/E ratio of 113.81. Its industry sports an average Forward P/E of 20.7, so one might conclude that Datadog is trading at a premium comparatively.
It's also important to note that DDOG currently trades at a PEG ratio of 7.8. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Datadog (DDOG) Dips More Than Broader Market: What You Should Know
In the latest close session, Datadog (DDOG - Free Report) was down 1.37% at $283.34. The stock's performance was behind the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Shares of the data analytics and cloud monitoring company have appreciated by 24.88% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.58%, and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. In that report, analysts expect Datadog to post earnings of $0.64 per share. This would mark year-over-year growth of 16.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.14 billion, up 28.88% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.52 per share and revenue of $4.46 billion, indicating changes of +22.93% and +30.23%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained unchanged. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Datadog is holding a Forward P/E ratio of 113.81. Its industry sports an average Forward P/E of 20.7, so one might conclude that Datadog is trading at a premium comparatively.
It's also important to note that DDOG currently trades at a PEG ratio of 7.8. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.