Datadog, Inc. (DDOG) closed the most recent trading day at $105.58, moving +1.28% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the company had gained 1.94% in the past month. In that same time, the Computer and Technology sector gained 4.2%, while the S&P 500 gained 3.84%.
Wall Street will be looking for positivity from DDOG as it approaches its next earnings report date. In that report, analysts expect DDOG to post earnings of $0.01 per share. This would mark a year-over-year decline of 66.67%. Our most recent consensus estimate is calling for quarterly revenue of $163.32 million, up 43.72% from the year-ago period.
Any recent changes to analyst estimates for DDOG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. DDOG is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, DDOG is holding a Forward P/E ratio of 621.36. Its industry sports an average Forward P/E of 82.83, 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 group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.
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