Why NASDAQ:DDOG Is a Promising High-Growth Stock in the Midst of Consolidation.

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.

Exploring NASDAQ:DDOG's Growth

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.
• Based on estimates for the next years, DDOG will show a very strong growth in Earnings Per Share. The EPS will grow by 22.47% on average per year.
• The Revenue is expected to grow by 23.13% on average over the next years. This is a very strong growth

How We Gauge Health for 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 8 reflects its health status:

• An Altman-Z score of 16.19 indicates that DDOG is not in any danger for bankruptcy at the moment.
• DDOG has a Altman-Z score of 16.19. This is amongst the best in the industry. DDOG outperforms 91.67% 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 2.13. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
• DDOG has a Current ratio of 2.13. This is in the better half of the industry: DDOG outperforms 61.59% 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 63.04% of its industry peers.

Exploring NASDAQ:DDOG's Profitability

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:

• Looking at the Return On Assets, with a value of 4.15%, DDOG is in the better half of the industry, outperforming 73.19% of the companies in the same industry.
• DDOG has a Return On Equity of 7.31%. This is in the better half of the industry: DDOG outperforms 74.28% of its industry peers.
• DDOG has a Return On Invested Capital of 2.05%. This is in the better half of the industry: DDOG outperforms 68.12% of its industry peers.
• Looking at the Profit Margin, with a value of 7.58%, DDOG is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
• The Operating Margin of DDOG (2.86%) is better than 65.94% of its industry peers.
• The Gross Margin of DDOG (81.22%) is better than 84.42% of its industry peers.

How do we evaluate the setup for NASDAQ:DDOG?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:DDOG is 9:

Although the technical rating is only medium, DDOG does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 144.97, 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

Keep in mind

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.