NASDAQ:DDOG—A High-Growth Stock Gearing Up for Its Next Upward Move.

In this article, we'll take a closer look at DATADOG INC - CLASS A (NASDAQ:DDOG) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DATADOG INC - CLASS A has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Examination for NASDAQ:DDOG

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:DDOG has earned a 9 for growth:

• 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.
• Measured over the past years, DDOG shows a very strong growth in Earnings Per Share. The EPS has been growing by 95.35% on average per year.
• Looking at the last year, DDOG shows a very strong growth in Revenue. The Revenue has grown by 26.18%.
• 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.
• The Revenue is expected to grow by 24.62% on average over the next years. This is a very strong growth

Health Assessment of NASDAQ:DDOG

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:DDOG, the assigned 7 reflects its health status:

• DDOG has an Altman-Z score of 12.34. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
• DDOG has a Altman-Z score of 12.34. This is amongst the best in the industry. DDOG outperforms 89.08% 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.
• A Quick Ratio of 2.01 indicates that DDOG has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:DDOG scores a 5 out of 10:

• DDOG has a better Return On Assets (3.70%) than 72.89% of its industry peers.
• With a decent Return On Equity value of 6.77%, DDOG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
• With a decent Return On Invested Capital value of 1.48%, DDOG is doing good in the industry, outperforming 68.31% of the companies in the same industry.
• The Profit Margin of DDOG (6.81%) is better than 73.59% of its industry peers.
• DDOG has a better Operating Margin (2.01%) than 66.20% of its industry peers.
• With an excellent Gross Margin value of 81.55%, DDOG belongs to the best of the industry, outperforming 85.21% of the companies in the same industry.

How does the Setup look for NASDAQ:DDOG

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:DDOG currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is bad, DDOG does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 114.87. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 107.20, 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.

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

Disclaimer

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.