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Datadog (DDOG) Stock Moves -1.91%: What You Should Know

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Datadog (DDOG - Free Report) closed the most recent trading day at $119.35, moving -1.91% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.82%. At the same time, the Dow lost 2.38%, and the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the data analytics and cloud monitoring company had lost 18.53% over the past month, lagging the Computer and Technology sector's loss of 10.31% and the S&P 500's loss of 5.33% in that time.

Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. This is expected to be May 5, 2022. The company is expected to report EPS of $0.11, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $337.3 million, up 69.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.49 per share and revenue of $1.52 billion, which would represent changes of +2.08% and +48.07%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Datadog currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Datadog is holding a Forward P/E ratio of 246.09. For comparison, its industry has an average Forward P/E of 52.48, which means Datadog is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% 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.

To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.


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