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Here's Why Datadog (DDOG) Fell More Than Broader Market
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Datadog (DDOG - Free Report) closed the latest trading day at $113.98, indicating a -0.94% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.93%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 1.53%.
Shares of the data analytics and cloud monitoring company witnessed a loss of 1.03% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.77% and the S&P 500's gain of 2.17%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. In that report, analysts expect Datadog to post earnings of $0.39 per share. This would mark a year-over-year decline of 13.33%. Simultaneously, our latest consensus estimate expects the revenue to be $662.55 million, showing a 21% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $2.63 billion, indicating changes of +23.48% and +23.4%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 70.43. Its industry sports an average Forward P/E of 31.14, so one might conclude that Datadog is trading at a premium comparatively.
Also, we should mention that DDOG has a PEG ratio of 7.37. 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 2.08 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 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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Here's Why Datadog (DDOG) Fell More Than Broader Market
Datadog (DDOG - Free Report) closed the latest trading day at $113.98, indicating a -0.94% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.93%. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 1.53%.
Shares of the data analytics and cloud monitoring company witnessed a loss of 1.03% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.77% and the S&P 500's gain of 2.17%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. In that report, analysts expect Datadog to post earnings of $0.39 per share. This would mark a year-over-year decline of 13.33%. Simultaneously, our latest consensus estimate expects the revenue to be $662.55 million, showing a 21% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $2.63 billion, indicating changes of +23.48% and +23.4%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Right now, Datadog possesses a Zacks Rank of #2 (Buy).
Investors should also note Datadog's current valuation metrics, including its Forward P/E ratio of 70.43. Its industry sports an average Forward P/E of 31.14, so one might conclude that Datadog is trading at a premium comparatively.
Also, we should mention that DDOG has a PEG ratio of 7.37. 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 2.08 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 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.