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Datadog (DDOG) closed at $142.70 in the latest trading session, marking a +0.06% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 0.28%.
Shares of the data analytics and cloud monitoring company witnessed a loss of 0.71% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.79% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company is slated to reveal its earnings on February 13, 2025. It is anticipated that the company will report an EPS of $0.43, marking a 2.27% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $711.65 million, indicating a 20.69% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. Such recent modifications usually signify the changing landscape 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, there's been a 0.35% rise in the Zacks Consensus EPS estimate. Right now, Datadog possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Datadog is at present trading with a Forward P/E ratio of 73.24. This valuation marks a premium compared to its industry's average Forward P/E of 30.86.
Meanwhile, DDOG's PEG ratio is currently 4.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry had an average PEG ratio of 2.24 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.