Datadog (DDOG) closed the most recent trading day at $134.33, moving +1.7% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
The data analytics and cloud monitoring company's stock has climbed by 12.05% in the past month, exceeding the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.
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 $0.41, marking a 4.65% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $789.55 million, reflecting a 22.36% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.7 per share and a revenue of $3.23 billion, demonstrating changes of -6.59% and +20.18%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 77.92. Its industry sports an average Forward P/E of 28.15, so one might conclude that Datadog is trading at a premium comparatively.
One should further note that DDOG currently holds a PEG ratio of 9.66. 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. The Internet - Software industry currently had an average PEG ratio of 2.25 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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