Is Datadog (DDOG) Stock Outpacing Its Computer and Technology Peers This Year?

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Datadog (DDOG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Datadog is one of 624 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Datadog is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, DDOG has moved about 58.7% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 46.6% on a year-to-date basis. As we can see, Datadog is performing better than its sector in the calendar year.

Another stock in the Computer and Technology sector, QuickLogic (QUIK), has outperformed the sector so far this year. The stock's year-to-date return is 152%.

Over the past three months, QuickLogic's consensus EPS estimate for the current year has increased 43.8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Datadog belongs to the Internet - Software industry, a group that includes 147 individual stocks and currently sits at #35 in the Zacks Industry Rank. On average, stocks in this group have gained 57.7% this year, meaning that DDOG is performing better in terms of year-to-date returns.

In contrast, QuickLogic falls under the Electronics - Semiconductors industry. Currently, this industry has 40 stocks and is ranked #198. Since the beginning of the year, the industry has moved +56.8%.

Datadog and QuickLogic could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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