Datadog (DDOG) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest close session, Datadog (DDOG) was down 1.95% at $127.50. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
The data analytics and cloud monitoring company's stock has climbed by 12.42% in the past month, exceeding the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. On that day, Datadog is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 4.65%. Our most recent consensus estimate is calling for quarterly revenue of $789.55 million, up 22.36% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.69 per share and revenue of $3.23 billion. These totals would mark changes of -7.14% and +20.17%, respectively, from last year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 3.1% lower. Datadog is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 76.76. This expresses a premium compared to the average Forward P/E of 27.94 of its industry.
We can also see that DDOG currently has a PEG ratio of 9.51. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 52, finds itself in the top 22% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.
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