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Datadog (DDOG) Gains As Market Dips: What You Should Know

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Datadog (DDOG - Free Report) closed the most recent trading day at $88.28, moving +0.51% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.27%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 4.91% over the past month. This has lagged the Computer and Technology sector's gain of 7.86% and the S&P 500's gain of 7.76% in that time.

DDOG will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020.

DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.05 per share and revenue of $562.30 million. These results would represent year-over-year changes of +600% and +55%, respectively.

Investors might also notice recent changes to analyst estimates for DDOG. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. DDOG is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, DDOG currently has a Forward P/E ratio of 1849.05. Its industry sports an average Forward P/E of 79.96, so we one might conclude that DDOG is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.

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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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