In the latest close session, Datadog (DDOG) was up +1.92% at $136.81. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.94%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 4.49% over the past month, lagging the Computer and Technology sector's gain of 5.46% and outpacing the S&P 500's gain of 2.46%.
The upcoming earnings release of Datadog will be of great interest to investors. On that day, Datadog is projected to report earnings of $0.45 per share, which would represent a year-over-year decline of 2.17%. In the meantime, our current consensus estimate forecasts the revenue to be $849.77 million, indicating a 23.15% growth compared to the corresponding quarter of the prior 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.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.93% higher within the past month. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 73.32. For comparison, its industry has an average Forward P/E of 31.99, which means Datadog is trading at a premium to the group.
Investors should also note that DDOG has a PEG ratio of 8.75 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.27 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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