NASDAQ:DDOG—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Jan 23, 2025

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.

Assessing Growth for NASDAQ:DDOG

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 39.26% 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
DDOG shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.30%.
The Revenue has been growing by 60.78% on average over the past years. This is a very strong growth!
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.

Understanding NASDAQ:DDOG's Health

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 15.38 indicates that DDOG is not in any danger for bankruptcy at the moment.
The Altman-Z score of DDOG (15.38) is better than 89.61% of its industry peers.
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 2.13. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of DDOG (2.13) is better than 62.01% of its industry peers.
A Quick Ratio of 2.13 indicates that DDOG has no problem at all paying its short term obligations.
The Quick ratio of DDOG (2.13) is better than 63.80% of its industry peers.

Profitability Insights: 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:

With a decent Return On Assets value of 4.15%, DDOG is doing good in the industry, outperforming 73.84% of the companies in the same industry.
The Return On Equity of DDOG (7.31%) is better than 74.55% of its industry peers.
The Return On Invested Capital of DDOG (2.05%) is better than 68.46% of its industry peers.
DDOG's Profit Margin of 7.58% is fine compared to the rest of the industry. DDOG outperforms 74.19% of its industry peers.
With a decent Operating Margin value of 2.86%, DDOG is doing good in the industry, outperforming 66.31% of the companies in the same industry.
Looking at the Gross Margin, with a value of 81.22%, DDOG belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.

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:

DDOG has only a medium 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 support zone below the current price at 139.55, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for DDOG in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.