Datadog (DDOG) closed at $92.25 in the latest trading session, marking a +1.77% move from the prior day. This move outpaced the S&P 500’s daily gain of 1.61%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.87%.
Heading into today, shares of the data analytics and cloud monitoring company had gained 8.51% over the past month, outpacing the Computer and Technology sector’s loss of 4.69% and the S&P 500’s loss of 4.08% in that time.
DDOG will be looking to display strength as it nears its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $144.25 million, up 50.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.13 per share and revenue of $570.72 million. These totals would mark changes of +1400% and +57.32%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DDOG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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 currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, DDOG is currently trading at a Forward P/E ratio of 725.2. This valuation marks a premium compared to its industry’s average Forward P/E of 77.15.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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