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Datadog (DDOG) Beats Stock Market Upswing: What Investors Need to Know
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In the latest market close, Datadog (DDOG - Free Report) reached $111.94, with a +0.48% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The data analytics and cloud monitoring company's shares have seen a decrease of 4.96% over the last month, not keeping up with the Computer and Technology sector's loss of 1.2% and the S&P 500's gain of 1.54%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is forecasted to report an EPS of $0.39, showcasing a 13.33% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $662.55 million, indicating a 21% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.63 per share and a revenue of $2.63 billion, demonstrating changes of +23.48% and +23.4%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 68.49 right now. For comparison, its industry has an average Forward P/E of 30.89, which means Datadog is trading at a premium to the group.
Also, we should mention that DDOG has a PEG ratio of 7.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Datadog (DDOG) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, Datadog (DDOG - Free Report) reached $111.94, with a +0.48% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.2%.
The data analytics and cloud monitoring company's shares have seen a decrease of 4.96% over the last month, not keeping up with the Computer and Technology sector's loss of 1.2% and the S&P 500's gain of 1.54%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is forecasted to report an EPS of $0.39, showcasing a 13.33% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $662.55 million, indicating a 21% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.63 per share and a revenue of $2.63 billion, demonstrating changes of +23.48% and +23.4%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 68.49 right now. For comparison, its industry has an average Forward P/E of 30.89, which means Datadog is trading at a premium to the group.
Also, we should mention that DDOG has a PEG ratio of 7.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 2 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.