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The most recent trading session ended with Datadog (DDOG) standing at $92.55, reflecting a +0.73% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 0.05%.
Heading into today, shares of the data analytics and cloud monitoring company had lost 11.63% over the past month, lagging the Computer and Technology sector's loss of 6.26% and the S&P 500's loss of 3.94% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 4.55% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $739.37 million, up 20.96% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.69 per share and revenue of $3.19 billion, indicating changes of -7.14% and +18.82%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.7% decrease. Datadog currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 54.52 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.15.
Also, we should mention that DDOG has a PEG ratio of 6.51. 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 1.91 at the close of the market yesterday.