Datadog (DDOG) closed at $88.48 in the latest trading session, marking a -0.46% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 8.42% over the past month. This has lagged the Computer and Technology sector's gain of 8.52% and outpaced the S&P 500's gain of 5.26% in that time.
Investors will be hoping for strength from DDOG as it approaches its next earnings release.
DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $562.30 million. These results would represent year-over-year changes of +400% and +55%, respectively.
Investors should also note any recent changes to analyst estimates for DDOG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DDOG is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DDOG has a Forward P/E ratio of 2633.78 right now. For comparison, its industry has an average Forward P/E of 65.81, which means DDOG is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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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