Datadog (DDOG) ended the recent trading session at $271.34, demonstrating a -2.48% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.22%. On the other hand, the Dow registered a loss of 0.66%, and the technology-centric Nasdaq decreased by 0.22%.
The data analytics and cloud monitoring company's stock has climbed by 32.35% in the past month, exceeding the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 1.4%.
Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company is expected to report EPS of $0.64, up 16.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 28.88% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.52 per share and a revenue of $4.46 billion, representing changes of +22.93% and +30.23%, respectively, from the prior year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 0.33% rise in the Zacks Consensus EPS estimate. Datadog is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 110.22 right now. Its industry sports an average Forward P/E of 20.09, so one might conclude that Datadog is trading at a premium comparatively.
Investors should also note that DDOG has a PEG ratio of 7.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.18 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Datadog, Inc. (DDOG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).