In the latest close session, Datadog (DDOG) was up +1.52% at $140.39. This change outpaced the S&P 500's 0.88% gain on the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 1.31%.
Shares of the data analytics and cloud monitoring company witnessed a loss of 13.34% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.49%, and the S&P 500's gain of 2.48%.
The upcoming earnings release of Datadog will be of great interest to investors. In that report, analysts expect Datadog to post earnings of $0.55 per share. This would mark year-over-year growth of 12.24%. In the meantime, our current consensus estimate forecasts the revenue to be $914.55 million, indicating a 23.97% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2 per share and revenue of $3.39 billion, indicating changes of +9.89% and +26.24%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.93% higher. Datadog is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 69.08. This signifies a premium in comparison to the average Forward P/E of 29.31 for its industry.
It is also worth noting that DDOG currently has a PEG ratio of 5.98. 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. DDOG's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% 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.
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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