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NASDAQ:DDOG: a strong growth stock preparing for the next leg up?.

By Mill Chart

Last update: May 21, 2024

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.

Growth Insights: NASDAQ:DDOG

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:DDOG has achieved a 9 out of 10:

  • The Earnings Per Share has grown by an impressive 78.22% 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 25.88%.
  • DDOG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.78% yearly.
  • Based on estimates for the next years, DDOG will show a very strong growth in Earnings Per Share. The EPS will grow by 21.95% on average per year.
  • The Revenue is expected to grow by 24.84% on average over the next years. This is a very strong growth

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DDOG has achieved a 7 out of 10:

  • An Altman-Z score of 13.75 indicates that DDOG is not in any danger for bankruptcy at the moment.
  • DDOG has a better Altman-Z score (13.75) than 92.73% of its industry peers.
  • The Debt to FCF ratio of DDOG is 1.11, which is an excellent value as it means it would take DDOG, only 1.11 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of DDOG (1.11) is better than 74.18% of its industry peers.
  • DDOG has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
  • Although DDOG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • DDOG has a Current Ratio of 3.43. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
  • DDOG's Current ratio of 3.43 is fine compared to the rest of the industry. DDOG outperforms 76.73% of its industry peers.
  • DDOG has a Quick Ratio of 3.43. This indicates that DDOG is financially healthy and has no problem in meeting its short term obligations.
  • DDOG's Quick ratio of 3.43 is fine compared to the rest of the industry. DDOG outperforms 76.73% of its industry peers.

Profitability Examination for NASDAQ:DDOG

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DDOG, the assigned 5 is a significant indicator of profitability:

  • With a decent Return On Assets value of 2.78%, DDOG is doing good in the industry, outperforming 72.36% of the companies in the same industry.
  • With a decent Return On Equity value of 5.23%, DDOG is doing good in the industry, outperforming 75.27% of the companies in the same industry.
  • The Return On Invested Capital of DDOG (0.34%) is better than 66.55% of its industry peers.
  • DDOG has a better Profit Margin (5.10%) than 74.18% of its industry peers.
  • The Operating Margin of DDOG (0.60%) is better than 66.55% of its industry peers.
  • The Gross Margin of DDOG (81.39%) is better than 86.55% of its industry peers.

How does the Setup look for NASDAQ:DDOG

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:DDOG currently has a 7 as setup rating:

DDOG has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 118.97, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

This article should in no way be interpreted as advice in any way. 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.

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