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Datadog (DDOG) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Datadog (DDOG - Free Report) closed at $132.40, marking a -1.61% move from the previous day. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The data analytics and cloud monitoring company's stock has climbed by 22.92% in the past month, exceeding the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company is predicted to post an EPS of $0.35, indicating a 2.78% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $622.79 million, up 22.25% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $2.6 billion, which would represent changes of +16.67% and +22.13%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Datadog is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Datadog currently has a Forward P/E ratio of 87.17. For comparison, its industry has an average Forward P/E of 29.89, which means Datadog is trading at a premium to the group.
One should further note that DDOG currently holds a PEG ratio of 9.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Datadog (DDOG) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Datadog (DDOG - Free Report) closed at $132.40, marking a -1.61% move from the previous day. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The data analytics and cloud monitoring company's stock has climbed by 22.92% in the past month, exceeding the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company is predicted to post an EPS of $0.35, indicating a 2.78% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $622.79 million, up 22.25% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.54 per share and revenue of $2.6 billion, which would represent changes of +16.67% and +22.13%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Datadog is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Datadog currently has a Forward P/E ratio of 87.17. For comparison, its industry has an average Forward P/E of 29.89, which means Datadog is trading at a premium to the group.
One should further note that DDOG currently holds a PEG ratio of 9.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 84, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.