Datadog (DDOG – Free Report) closed the most recent trading day at $110.58, moving +0.37% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 6.25% over the past month, lagging the Computer and Technology sector’s loss of 5.94% and the S&P 500’s loss of 3.59% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.42, indicating a 4.55% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $739.51 million, indicating a 20.98% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $3.19 billion, which would represent changes of -7.14% and +18.85%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Datadog. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 10.65% lower. Datadog presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Datadog is at present trading with a Forward P/E ratio of 65.32. This indicates a premium in contrast to its industry’s Forward P/E of 28.29.
Also, we should mention that DDOG has a PEG ratio of 7.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 2.07.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 128, finds itself in the top 50% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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