NASDAQ:DDOG, a strong growth stock, setting up for a breakout.

Last update: Nov 8, 2024

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DATADOG INC - CLASS A (NASDAQ:DDOG) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DATADOG INC - CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Analysis for NASDAQ:DDOG

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:DDOG has received a 9 out of 10:

The Earnings Per Share has grown by an impressive 65.49% over the past year.
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.
DDOG shows a strong growth in Revenue. In the last year, 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.
DDOG is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.91% yearly.
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.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:DDOG has earned a 8 out of 10:

DDOG has an Altman-Z score of 14.00. This indicates that DDOG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.00, DDOG belongs to the top of the industry, outperforming 89.32% of the companies in the same industry.
There is no outstanding debt for DDOG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
DDOG has a Current ratio of 2.01. This is in the better half of the industry: DDOG outperforms 60.50% of its industry peers.
DDOG has a Quick Ratio of 2.01. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.01, DDOG is in the better half of the industry, outperforming 61.21% of the companies in the same industry.

Profitability Examination for NASDAQ:DDOG

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DDOG has earned a 5 out of 10:

DDOG has a Return On Assets of 3.70%. This is in the better half of the industry: DDOG outperforms 72.60% of its industry peers.
DDOG has a Return On Equity of 6.77%. This is in the better half of the industry: DDOG outperforms 74.38% of its industry peers.
With a decent Return On Invested Capital value of 1.48%, DDOG is doing good in the industry, outperforming 67.62% of the companies in the same industry.
The Profit Margin of DDOG (6.81%) is better than 72.95% of its industry peers.
DDOG has a better Operating Margin (2.01%) than 65.84% of its industry peers.
DDOG has a better Gross Margin (81.55%) than 85.41% of its industry peers.

How does the Setup look for NASDAQ:DDOG

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:DDOG this score is currently 7:

Besides having an excellent technical rating, DDOG also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 131.46. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 126.73, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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

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

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.