In the latest close session, Datadog (DDOG) was down 1.77% at $152.41. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Shares of the data analytics and cloud monitoring company have appreciated by 27.01% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.88%, and the S&P 500's gain of 5.22%.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.41, signifying a 4.65% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $789.55 million, showing a 22.36% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.7 per share and a revenue of $3.23 billion, signifying shifts of -6.59% and +20.18%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Datadog is carrying a Zacks Rank of #4 (Sell).
Digging into valuation, Datadog currently has a Forward P/E ratio of 91.53. This signifies a premium in comparison to the average Forward P/E of 29.69 for its industry.
It's also important to note that DDOG currently trades at a PEG ratio of 11.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DDOG's industry had an average PEG ratio of 2.24 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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