Datadog (DDOG) closed at $136.50 in the latest trading session, marking a -1.9% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Elsewhere, the Dow saw a downswing of 0.59%, while the tech-heavy Nasdaq appreciated by 0.45%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 11.75% outpaced the Computer and Technology sector's gain of 5.42% and the S&P 500's gain of 3.44%.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.45, indicating a 2.17% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $849.77 million, reflecting a 23.15% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.83 per share and a revenue of $3.32 billion, representing changes of +0.55% and +23.65%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Datadog is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Datadog is presently being traded at a Forward P/E ratio of 75.98. For comparison, its industry has an average Forward P/E of 32, which means Datadog is trading at a premium to the group.
It is also worth noting that DDOG currently has a PEG ratio of 9.07. 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 had an average PEG ratio of 2.25 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 68, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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, Inc. (DDOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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