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Datadog (DDOG) Outperforms Broader Market: What You Need to Know
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Datadog (DDOG - Free Report) closed at $130.77 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 10.45% over the past month, outpacing the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82% in that time.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company's upcoming EPS is projected at $0.35, signifying a 2.78% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $622.74 million, showing a 22.23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.54 per share and a revenue of $2.6 billion, demonstrating changes of +16.67% and +22.26%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Datadog is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 83.84. This indicates a premium in contrast to its industry's Forward P/E of 29.87.
It is also worth noting that DDOG currently has a PEG ratio of 8.77. 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 industry had an average PEG ratio of 1.75 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Datadog (DDOG) Outperforms Broader Market: What You Need to Know
Datadog (DDOG - Free Report) closed at $130.77 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 10.45% over the past month, outpacing the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 3.82% in that time.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company's upcoming EPS is projected at $0.35, signifying a 2.78% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $622.74 million, showing a 22.23% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.54 per share and a revenue of $2.6 billion, demonstrating changes of +16.67% and +22.26%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Datadog is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Datadog is presently trading at a Forward P/E ratio of 83.84. This indicates a premium in contrast to its industry's Forward P/E of 29.87.
It is also worth noting that DDOG currently has a PEG ratio of 8.77. 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 industry had an average PEG ratio of 1.75 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.