Datadog (DDOG) closed at $101.33 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the data analytics and cloud monitoring company had gained 8.14% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 3.25%.
Investors will be hoping for strength from DDOG as it approaches its next earnings release, which is expected to be November 10, 2020. Meanwhile, our latest consensus estimate is calling for revenue of $144.24 million, up 50.47% from the prior-year quarter.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.13 per share and revenue of $570.60 million. These results would represent year-over-year changes of +1400% and +57.29%, respectively.
It is also important to note the recent changes to analyst estimates for DDOG. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DDOG is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note DDOG's current valuation metrics, including its Forward P/E ratio of 794.55. Its industry sports an average Forward P/E of 82.44, so we one might conclude that DDOG is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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