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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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Datadog (DDOG - Free Report) closed at $109.87 in the latest trading session, marking a -0.03% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 16.3% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release, which is expected to be August 8, 2023. The company is expected to report EPS of $0.28, up 16.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $500.37 million, up 23.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $2.09 billion. These totals would mark changes of +19.39% and +24.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 94.1. This valuation marks a premium compared to its industry's average Forward P/E of 43.5.
We can also see that DDOG currently has a PEG ratio of 3.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
Datadog (DDOG - Free Report) closed at $109.87 in the latest trading session, marking a -0.03% move from the prior day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 16.3% in the past month. In that same time, the Computer and Technology sector gained 1.16%, while the S&P 500 gained 3.43%.
Investors will be hoping for strength from Datadog as it approaches its next earnings release, which is expected to be August 8, 2023. The company is expected to report EPS of $0.28, up 16.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $500.37 million, up 23.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $2.09 billion. These totals would mark changes of +19.39% and +24.92%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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 is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 94.1. This valuation marks a premium compared to its industry's average Forward P/E of 43.5.
We can also see that DDOG currently has a PEG ratio of 3.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.