NASDAQ:DDOG qualifies as a high growth stock and is consolidating.

Last update: Oct 18, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DATADOG INC - CLASS A (NASDAQ:DDOG) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DATADOG INC - CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Analyzing Growth Metrics

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:DDOG was assigned a score of 9 for growth:

The Earnings Per Share has grown by an impressive 65.49% over the past year.
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!
DDOG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.78% yearly.
The Earnings Per Share is expected to grow by 22.91% on average over the next years. This is a very strong growth
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.

Health Examination for NASDAQ:DDOG

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:DDOG has earned a 8 out of 10:

An Altman-Z score of 13.78 indicates that DDOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of DDOG (13.78) is better than 89.29% 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.
DDOG has a Current Ratio of 2.01. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.01 indicates that DDOG has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.01, DDOG is doing good in the industry, outperforming 60.36% of the companies in the same industry.

What does the Profitability looks like for NASDAQ:DDOG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:DDOG, the assigned 5 is noteworthy for profitability:

Looking at the Return On Assets, with a value of 3.70%, DDOG is in the better half of the industry, outperforming 72.14% of the companies in the same industry.
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.
DDOG's Return On Invested Capital of 1.48% is fine compared to the rest of the industry. DDOG outperforms 67.50% of its industry peers.
The Profit Margin of DDOG (6.81%) is better than 73.21% of its industry peers.
Looking at the Operating Margin, with a value of 2.01%, DDOG is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
DDOG has a better Gross Margin (81.55%) than 85.36% of its industry peers.

Why is NASDAQ:DDOG a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:DDOG scores a 7 out of 10:

DDOG has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 132.98. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 120.88, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DDOG

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.