Datadog (DDOG) closed the most recent trading day at $154.52, moving -1.8% from the previous trading session. This change lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Shares of the data analytics and cloud monitoring company witnessed a gain of 15.33% over the previous month, beating the performance of the Computer and Technology sector with its gain of 7.44%, and the S&P 500's gain of 4.06%.
The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company's upcoming EPS is projected at $0.45, signifying a 2.17% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $849.77 million, indicating a 23.15% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.84 per share and a revenue of $3.32 billion, signifying shifts of +1.1% and +23.65%, respectively, from the last year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.67% higher. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 85.61. For comparison, its industry has an average Forward P/E of 30, which means Datadog is trading at a premium to the group.
Meanwhile, DDOG's PEG ratio is currently 10.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.35.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
