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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Datadog (DDOG - Free Report) closed at $82.15, marking a -0.23% move from the previous day. This change lagged the S&P 500's 2.37% gain on the day. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 7.94% over the past month, lagging the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Datadog will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. On that day, Datadog is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.61 million, up 52.54% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. These results would represent year-over-year changes of +62.5% and +57.75%, respectively.
Investors might also notice recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 2.14% lower. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 105.29 right now. Its industry sports an average Forward P/E of 42.08, so we one might conclude that Datadog is trading at a premium comparatively.
It is also worth noting that DDOG currently has a PEG ratio of 2.49. 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. The Internet - Software industry currently had an average PEG ratio of 2.07 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Datadog (DDOG - Free Report) closed at $82.15, marking a -0.23% move from the previous day. This change lagged the S&P 500's 2.37% gain on the day. At the same time, the Dow added 2.47%, and the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 7.94% over the past month, lagging the Computer and Technology sector's loss of 5.85% and the S&P 500's loss of 4.82% in that time.
Datadog will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. On that day, Datadog is projected to report earnings of $0.16 per share, which would represent year-over-year growth of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $412.61 million, up 52.54% from the year-ago period.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.78 per share and revenue of $1.62 billion. These results would represent year-over-year changes of +62.5% and +57.75%, respectively.
Investors might also notice recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 2.14% lower. Datadog is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 105.29 right now. Its industry sports an average Forward P/E of 42.08, so we one might conclude that Datadog is trading at a premium comparatively.
It is also worth noting that DDOG currently has a PEG ratio of 2.49. 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. The Internet - Software industry currently had an average PEG ratio of 2.07 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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.