Is NASDAQ:DDOG on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Dec 18, 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.

Evaluating Growth: 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:

The Earnings Per Share has grown by an impressive 39.26% 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 26.30%.
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 22.36% yearly.
DDOG is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.11% yearly.

Health Insights: NASDAQ:DDOG

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:DDOG, the assigned 8 for health provides valuable insights:

An Altman-Z score of 17.09 indicates that DDOG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 17.09, DDOG belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
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 2.13. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
DDOG has a better Current ratio (2.13) than 62.95% of its industry peers.
A Quick Ratio of 2.13 indicates that DDOG has no problem at all paying its short term obligations.
DDOG has a better Quick ratio (2.13) than 64.75% of its industry peers.

Profitability Analysis for NASDAQ:DDOG

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 (4.15%) than 74.10% of its industry peers.
With a decent Return On Equity value of 7.31%, DDOG is doing good in the industry, outperforming 74.82% of the companies in the same industry.
With a decent Return On Invested Capital value of 2.05%, DDOG is doing good in the industry, outperforming 68.70% of the companies in the same industry.
Looking at the Profit Margin, with a value of 7.58%, DDOG is in the better half of the industry, outperforming 74.82% of the companies in the same industry.
DDOG has a better Operating Margin (2.86%) than 66.91% of its industry peers.
Looking at the Gross Margin, with a value of 81.22%, DDOG belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:DDOG?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DDOG is 7:

DDOG has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 154.21, 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

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

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.