The most recent trading session ended with Datadog (DDOG) standing at $92.55, reflecting a +0.73% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 0.05%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 11.63% over the past month, lagging the Computer and Technology sector's loss of 6.26% and the S&P 500's loss of 3.94% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 4.55% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $739.37 million, up 20.96% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.69 per share and revenue of $3.19 billion, indicating changes of -7.14% and +18.82%, respectively, compared to the previous 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 company's 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.7% decrease. Datadog currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 54.52 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.15.
Also, we should mention that DDOG has a PEG ratio of 6.51. 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 average PEG ratio for the Internet - Software industry stood at 1.91 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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