Why NASDAQ:DDOG Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Aug 14, 2024

Exploring Growth Potential: DATADOG INC - CLASS A (NASDAQ:DDOG) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and DATADOG INC - CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected DATADOG INC - CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

Unpacking NASDAQ:DDOG's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:DDOG scores a 9 out of 10:

DDOG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.49%, which is quite impressive.
The Earnings Per Share has been growing by 95.35% on average over the past years. This is a very strong growth
The Revenue has grown by 26.18% in the past year. This is a very strong growth!
Measured over the past years, DDOG shows a very strong growth in Revenue. The Revenue has been growing by 60.78% on average per year.
Based on estimates for the next years, DDOG will show a very strong growth in Earnings Per Share. The EPS will grow by 22.91% on average per year.
Based on estimates for the next years, DDOG will show a very strong growth in Revenue. The Revenue will grow by 24.62% on average per year.

Exploring NASDAQ:DDOG's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DDOG has received a 8 out of 10:

An Altman-Z score of 12.49 indicates that DDOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of DDOG (12.49) is better than 90.85% of its industry peers.
DDOG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 2.01 indicates that DDOG has no problem at all paying its short term obligations.
The Current ratio of DDOG (2.01) is better than 62.32% of its industry peers.
A Quick Ratio of 2.01 indicates that DDOG has no problem at all paying its short term obligations.
DDOG has a better Quick ratio (2.01) than 62.68% of its industry peers.

Profitability Assessment of NASDAQ:DDOG

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:DDOG has achieved a 5:

The Return On Assets of DDOG (3.70%) is better than 73.94% of its industry peers.
Looking at the Return On Equity, with a value of 6.77%, DDOG is in the better half of the industry, outperforming 75.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.48%, DDOG is in the better half of the industry, outperforming 67.25% of the companies in the same industry.
The Profit Margin of DDOG (6.81%) is better than 73.59% of its industry peers.
The Operating Margin of DDOG (2.01%) is better than 65.85% of its industry peers.
DDOG's Gross Margin of 81.55% is amongst the best of the industry. DDOG outperforms 86.62% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:DDOG is 7:

DDOG has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 114.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 107.25, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of DDOG for a complete fundamental analysis.

Our latest full technical report of DDOG contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.