Datadog (DDOG) closed at $160.88 in the latest trading session, marking a -2.02% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. On the other hand, the Dow registered a gain of 0.44%, and the technology-centric Nasdaq decreased by 0.76%.
Shares of the data analytics and cloud monitoring company witnessed a gain of 18.43% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.34%, and the S&P 500's gain of 1.14%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 2.17% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $849.77 million, up 23.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.84 per share and revenue of $3.32 billion, indicating changes of +1.1% and +23.65%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Datadog currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is presently being traded at a Forward P/E ratio of 89.34. For comparison, its industry has an average Forward P/E of 28.74, which means Datadog is trading at a premium to the group.
We can also see that DDOG currently has a PEG ratio of 10.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 57, this industry ranks in the top 24% of all industries, numbering over 250.
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.
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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