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717900.0
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2015-03-02 00:00:00 UTC
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Noteworthy ETF Outflows: DDM, AXP, DD, NKE
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DDM
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https://www.nasdaq.com/articles/noteworthy-etf-outflows-ddm-axp-dd-nke-2015-03-02
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra Dow30 (Symbol: DDM) where we have detected an approximate $21.0 million dollar outflow -- that's a 5.8% decrease week over week (from 2,575,000 to 2,425,000). Among the largest underlying components of DDM, in trading today American Express Co. (Symbol: AXP) is up about 0.6%, DuPont (Symbol: DD) is up about 0.1%, and Nike (Symbol: NKE) is higher by about 1.4%. For a complete list of holdings, visit the DDM Holdings page » The chart below shows the one year price performance of DDM, versus its 200 day moving average:
Looking at the chart above, DDM's low point in its 52 week range is $106.22 per share, with $141.73 as the 52 week high point - that compares with a last trade of $141.66. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » . Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra Dow30 (Symbol: DDM) where we have detected an approximate $21.0 million dollar outflow -- that's a 5.8% decrease week over week (from 2,575,000 to 2,425,000). Among the largest underlying components of DDM, in trading today American Express Co. (Symbol: AXP) is up about 0.6%, DuPont (Symbol: DD) is up about 0.1%, and Nike (Symbol: NKE) is higher by about 1.4%. For a complete list of holdings, visit the DDM Holdings page » The chart below shows the one year price performance of DDM, versus its 200 day moving average: Looking at the chart above, DDM's low point in its 52 week range is $106.22 per share, with $141.73 as the 52 week high point - that compares with a last trade of $141.66.
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Among the largest underlying components of DDM, in trading today American Express Co. (Symbol: AXP) is up about 0.6%, DuPont (Symbol: DD) is up about 0.1%, and Nike (Symbol: NKE) is higher by about 1.4%. For a complete list of holdings, visit the DDM Holdings page » The chart below shows the one year price performance of DDM, versus its 200 day moving average: Looking at the chart above, DDM's low point in its 52 week range is $106.22 per share, with $141.73 as the 52 week high point - that compares with a last trade of $141.66. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra Dow30 (Symbol: DDM) where we have detected an approximate $21.0 million dollar outflow -- that's a 5.8% decrease week over week (from 2,575,000 to 2,425,000).
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra Dow30 (Symbol: DDM) where we have detected an approximate $21.0 million dollar outflow -- that's a 5.8% decrease week over week (from 2,575,000 to 2,425,000). For a complete list of holdings, visit the DDM Holdings page » The chart below shows the one year price performance of DDM, versus its 200 day moving average: Looking at the chart above, DDM's low point in its 52 week range is $106.22 per share, with $141.73 as the 52 week high point - that compares with a last trade of $141.66. Among the largest underlying components of DDM, in trading today American Express Co. (Symbol: AXP) is up about 0.6%, DuPont (Symbol: DD) is up about 0.1%, and Nike (Symbol: NKE) is higher by about 1.4%.
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For a complete list of holdings, visit the DDM Holdings page » The chart below shows the one year price performance of DDM, versus its 200 day moving average: Looking at the chart above, DDM's low point in its 52 week range is $106.22 per share, with $141.73 as the 52 week high point - that compares with a last trade of $141.66. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the ProShares Ultra Dow30 (Symbol: DDM) where we have detected an approximate $21.0 million dollar outflow -- that's a 5.8% decrease week over week (from 2,575,000 to 2,425,000). Among the largest underlying components of DDM, in trading today American Express Co. (Symbol: AXP) is up about 0.6%, DuPont (Symbol: DD) is up about 0.1%, and Nike (Symbol: NKE) is higher by about 1.4%.
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184315f6-5dca-4bcf-a604-38e588fff949
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717901.0
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2014-11-11 00:00:00 UTC
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Visa Inc. (V) Ex-Dividend Date Scheduled for November 12, 2014
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DDM
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https://www.nasdaq.com/articles/visa-inc-v-ex-dividend-date-scheduled-november-12-2014-2014-11-11
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nan
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nan
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Visa Inc. ( V ) will begin trading ex-dividend on November 12, 2014. A cash dividend payment of $0.48 per share is scheduled to be paid on December 02, 2014. Shareholders who purchased V stock prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 20% increase over the prior quarter. At the current stock price of $250.21, the dividend yield is .77%.
The previous trading day's last sale of V was $250.21, representing a -0.88% decrease from the 52 week high of $252.43 and a 28.42% increase over the 52 week low of $194.84.
V is a part of the Miscellaneous sector, which includes companies such as Mastercard Incorporated ( MA ) and eBay Inc. ( EBAY ). V's current earnings per share, an indicator of a company's profitability, is $8.61. Zacks Investment Research reports V's forecasted earnings growth in 2015 as 14.63%, compared to an industry average of 16%.
For more information on the declaration, record and payment dates, visit the V Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to V through an Exchange Traded Fund [ETF]?
The following ETF(s) have V as a top-10 holding:
DIAMONDS Trust Series I ( DIA )
iShares Dow Jones U.S. Financial Services Index Fund ( IYG )
Columbia Select Large Cap Growth ETF ( RWG )
iShares Dow Jones U.S. Financials Index Fund ( IYF )
ProShares Ultra Dow30 ( DDM ).
The top-performing ETF of this group is RWG with an increase of 14.13% over the last 100 days. DIA has the highest percent weighting of V at 7.93%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following ETF(s) have V as a top-10 holding: DIAMONDS Trust Series I ( DIA ) iShares Dow Jones U.S. Financial Services Index Fund ( IYG ) Columbia Select Large Cap Growth ETF ( RWG ) iShares Dow Jones U.S. Financials Index Fund ( IYF ) ProShares Ultra Dow30 ( DDM ). Shareholders who purchased V stock prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports V's forecasted earnings growth in 2015 as 14.63%, compared to an industry average of 16%.
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The following ETF(s) have V as a top-10 holding: DIAMONDS Trust Series I ( DIA ) iShares Dow Jones U.S. Financial Services Index Fund ( IYG ) Columbia Select Large Cap Growth ETF ( RWG ) iShares Dow Jones U.S. Financials Index Fund ( IYF ) ProShares Ultra Dow30 ( DDM ). The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following ETF(s) have V as a top-10 holding: DIAMONDS Trust Series I ( DIA ) iShares Dow Jones U.S. Financial Services Index Fund ( IYG ) Columbia Select Large Cap Growth ETF ( RWG ) iShares Dow Jones U.S. Financials Index Fund ( IYF ) ProShares Ultra Dow30 ( DDM ). Shareholders who purchased V stock prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of V was $250.21, representing a -0.88% decrease from the 52 week high of $252.43 and a 28.42% increase over the 52 week low of $194.84.
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The following ETF(s) have V as a top-10 holding: DIAMONDS Trust Series I ( DIA ) iShares Dow Jones U.S. Financial Services Index Fund ( IYG ) Columbia Select Large Cap Growth ETF ( RWG ) iShares Dow Jones U.S. Financials Index Fund ( IYF ) ProShares Ultra Dow30 ( DDM ). Shareholders who purchased V stock prior to the ex-dividend date are eligible for the cash dividend payment. V's current earnings per share, an indicator of a company's profitability, is $8.61.
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098826fa-9279-4313-bbcb-a7012bbdd4e7
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717902.0
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2014-05-07 00:00:00 UTC
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MetLife Earnings Hurt By FX Headwinds, Underwriting Results In The U.S.
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DDM
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https://www.nasdaq.com/articles/metlife-earnings-hurt-fx-headwinds-underwriting-results-us-2014-05-07
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nan
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nan
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MetLife's ( MET ) first quarter results saw net income increase 36% over the prior year, but failed to inspire confidence as operating earnings fell 4% from the prior year. Operating earnings from the Americas region were up 3%, but the income from the Asia region dropped 2% on a reported basis due to FX headwinds, despite an 8% increase on a constant currency basis. Earnings were also affected by a $57 million after-tax expense related to the recent settlement with the New York Department of Financial Services. The net income also included an after-tax loss of $343 million related to the sale of the U.K. pension risk transfer business to Rothesay Life Ltd.
Our $49 price estimate for MetLife's stock is in line with the current market price. We use a dividend discount methodology ( DDM ) to estimate the value of the company, estimating the total income that can be returned to shareholders and discounting this value back to the present. MetLife's capital distribution capabilities might be restricted by its potential as a non-bank Systemically Important Financial Institution by the Financial Stability Oversight Council. The enhanced standards that will apply to MetLife should it be designated as a SIFI have not yet been announced by the Fed.
See our full analysis of MetLife
Margins Decline In The U.S.
MetLife is the largest life insurance company in the U.S., with a market share of over 10%, ahead of AFLAC Group and Prudential Financial ( PRU ). The company offers life insurance products and annuities to individuals through its retail division; and group life and dental contracts to corporate employers through its group voluntary & worksite benefits division.
The retail division accounted for nearly 80% of the first quarter operating income from U.S. operations. Although strong fixed annuity sales led to a 9% increase in premiums, fees and other income, operating earnings fell 2%. This was primarily because of adverse mortality results as the mortality ratio, which shows direct claims experienced as a percentage of the expected claims, increased from 91.3% in the first quarter of 2013 to 93.6%, outside the target of 85% to 90%. The company also introduced a new metric to gauge its underwriting performance, the interest adjusted benefit ratio. This ratio measures claims net of reinsurance and changes in future policyholder benefits net of interest relative to premiums. The interest adjusted benefit ratio increased from 52.1% in 2012 to 56.9%. This was outside the company's target of 50% to 55%.
Despite the poor underwriting performance, management reiterated that the company's risk profile remains favorable and that it is shifting its sales mix away from market-sensitive products such as variable annuities to more balanced protection products. Variable annuity sales were down 54% this quarter, as MetLife continued to cut down on the offering. The company was the leading seller of variable annuities in 2011 but has dropped down to sixth place, behind AIG ( AIG ), which is making a sales push. We expect the company's loss ratio to remain within the historical average range. You can modify the interactive chart below to gauge the effect the company's efforts to improve underwriting performance might have on our price estimate.
Acquisition Helps Latin America Performance
Latin America earnings were helped by the $2 billion acquisition of Chilean private pension-fund administrator ProVida from BBVA. Operating earnings were up 48% on a constant currency basis and 28% on a reported basis, with premiums and fees increasing 9% over the previous year on a reported basis and 22% on a constant currency basis. The company also reported organic growth; excluding the ProVida acquisition, sales were up 15% while premiums and fees increased 12% on a constant currency basis. Latin America accounted for 10% of the company's operating earnings. MetLife's share of the Latin American market increased from 3.6% in 2009 to 4.4% in 2013, and we expect it to maintain this momentum through the coming years.
Currency Fluctuations Affect Earnings From Asia
MetLife's Asian operations accounted for nearly a quarter of the company's operating income in the first quarter. The division's operating income was down 2% as FX headwinds affected earnings. Premiums and fees were down 6% on a reported basis but increased 6% on a constant currency basis as currencies, particularly the Japanese Yen, weakened against the U.S. dollar.
Japan is the fulcrum of MetLife's Asia-Pacific operations. The company has a market share of around 5% in the Japanese insurance market, with around 7 million policies in force and over $75 billion in assets. MetLife offers Yen whole life products such as low cash value whole life, Yen interest simplified whole life and simplified issue whole life, as well as foreign currency whole life products. Bancassurance is the main distribution model for the company, accounting for 33% of the sales. MetLife has around 100 banking partners in the country with over 42 tier 1 regional banks and five mega banks. First quarter Japan sales were unchanged from the previous year as the company's pricing actions led to a decline in Yen life sales even though retirement product sales were strong.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We use a dividend discount methodology ( DDM ) to estimate the value of the company, estimating the total income that can be returned to shareholders and discounting this value back to the present. Earnings were also affected by a $57 million after-tax expense related to the recent settlement with the New York Department of Financial Services. Although strong fixed annuity sales led to a 9% increase in premiums, fees and other income, operating earnings fell 2%.
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We use a dividend discount methodology ( DDM ) to estimate the value of the company, estimating the total income that can be returned to shareholders and discounting this value back to the present. Although strong fixed annuity sales led to a 9% increase in premiums, fees and other income, operating earnings fell 2%. Acquisition Helps Latin America Performance Latin America earnings were helped by the $2 billion acquisition of Chilean private pension-fund administrator ProVida from BBVA.
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We use a dividend discount methodology ( DDM ) to estimate the value of the company, estimating the total income that can be returned to shareholders and discounting this value back to the present. Operating earnings were up 48% on a constant currency basis and 28% on a reported basis, with premiums and fees increasing 9% over the previous year on a reported basis and 22% on a constant currency basis. Currency Fluctuations Affect Earnings From Asia MetLife's Asian operations accounted for nearly a quarter of the company's operating income in the first quarter.
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We use a dividend discount methodology ( DDM ) to estimate the value of the company, estimating the total income that can be returned to shareholders and discounting this value back to the present. Operating earnings from the Americas region were up 3%, but the income from the Asia region dropped 2% on a reported basis due to FX headwinds, despite an 8% increase on a constant currency basis. Although strong fixed annuity sales led to a 9% increase in premiums, fees and other income, operating earnings fell 2%.
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7092b7d7-266d-4529-ac38-4241590753f2
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717903.0
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2014-01-23 00:00:00 UTC
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Travelers Maintains Underwriting Profitability, Helped By Lack Of Catastrophes
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DDM
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https://www.nasdaq.com/articles/travelers-maintains-underwriting-profitability-helped-lack-catastrophes-2014-01-23
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nan
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nan
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The Travelers Companies, Inc. ( TRV ) reported strong results for the fourth quarter of 2013, driven by improved underlying margins, prior year reserve development and lower catastrophe related losses. Net income for the quarter soared 225% as the combined ratio (total expenses to premiums) improved 18 percentage points to 87.7%. A combined ratio of below 100% indicates that the insurer is able to generate an underwriting profit. Traveler's pricing strategy and underwriting discipline has allowed it to maintain profitability despite low returns from investments; the underlying underwriting gain for the full year increased 44% over the last year. The lack of natural disasters also helped the company, as catastrophe related losses dropped from $1 billion in the fourth quarter of 2012 to $53 million. Catastrophe related losses were due to Hurricane Sandy in 2012. Net written premiums for the fourth quarter were up 5%, driven by the acquisition of Canadian insurer Dominion. The transaction was completed in November.
Travelers returned excess capital to shareholders with $1 billion in share repurchases and $182 in dividends during the fourth quarter. To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). In our model, we are estimating the total income that can be returned to shareholders and discounting this value back to the present.
Our price estimate of $97 for Travelers implies a premium of 15% to the current market price. Despite the positive results, the stock fell 1.7% after the announcement, as investors were likely deterred by the exposure of the company's results to future natural disasters (as much of the growth in earnings came from a relative lack of catastrophes).
See Full Analysis for Travelers Here
Improvements In Business Insurance Margins
Business insurance is the most important division for Travelers, accounting for more than half of the company's premiums and nearly 65% of its operating income. For the fourth quarter, the company reported an underwriting gain of $333 million from the division, as opposed to a loss of $119 million in 2012. In line with recent quarters, Travelers maintained a renewal premium change rate (change in average premium on policies that were renewed) of 8% while keeping the retention rate over 80%. These rate increases exceeded loss trends as the underlying combined ratio improved by 1 percentage point to 91.5%. For the full year, the improvement was of 2.5 percentage points with the ratio reaching 92.2%.
The rate changes also affected the top line as the company reported a record-high net written premium volume of $12.2 billion for the full year, up 3% over the prior year. The commercial property line of insurance reported the biggest gain of 10% for the fourth quarter and 6% for the full year. The workers' compensation line, which accounts for 30% of the division's premium volume, reported a 4% increase for the quarter and a 7% increase for the full year. Travelers is currently the second largest insurer in workers' compensation line in the U.S., with a market share of 8%. We expect further growth in this line as the improving job market leads to higher demand for business insurance.
Quantum Launched
Travelers launched Quantum 2.0, a low cost segmented auto insurance product, in 18 states across the U.S. during the fourth quarter. This product successfully drove an increase in new business volume while the company maintained renewal premium change rate of 7% with a retention rate of 81%. Despite this, the net premium volume decreased 4% as the total number of policies in force fell from 2.4 million at the end of 2012 to 2.1 million at the end of 2013. Profitability remained strong as the underlying combined ratio improved 1.6 percentage points to 97.6% for the full year. Travelers has a market share of 2% in the highly competitive auto market and will have to keep adapting to maintain it.
Strong At Home
In the homeowners' line of insurance, Travelers maintained a high premium change rate of 10% with a retention rate of 84%. The full year combined ratio was 77%, indicating a very strong underwriting performance. The total number of policies in force dropped from 4.7 million to 4.3 million, as net written premiums fell 4% for the quarter. Travelers has a market share of 5% in the market, but its focus on profitability could well see it lose some share in the coming years.
See More at Trefis|View Interactive S&P Capital IQ Analyses (Powered by Trefis)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). The Travelers Companies, Inc. ( TRV ) reported strong results for the fourth quarter of 2013, driven by improved underlying margins, prior year reserve development and lower catastrophe related losses. Net income for the quarter soared 225% as the combined ratio (total expenses to premiums) improved 18 percentage points to 87.7%.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). The Travelers Companies, Inc. ( TRV ) reported strong results for the fourth quarter of 2013, driven by improved underlying margins, prior year reserve development and lower catastrophe related losses. In line with recent quarters, Travelers maintained a renewal premium change rate (change in average premium on policies that were renewed) of 8% while keeping the retention rate over 80%.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). The Travelers Companies, Inc. ( TRV ) reported strong results for the fourth quarter of 2013, driven by improved underlying margins, prior year reserve development and lower catastrophe related losses. See Full Analysis for Travelers Here Improvements In Business Insurance Margins Business insurance is the most important division for Travelers, accounting for more than half of the company's premiums and nearly 65% of its operating income.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). The Travelers Companies, Inc. ( TRV ) reported strong results for the fourth quarter of 2013, driven by improved underlying margins, prior year reserve development and lower catastrophe related losses. Net income for the quarter soared 225% as the combined ratio (total expenses to premiums) improved 18 percentage points to 87.7%.
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9e2353c1-154d-46f4-9875-f4f9428cae99
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717904.0
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2014-01-21 00:00:00 UTC
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Strong Holiday Spending Helps American Express' Q4 Results
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DDM
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https://www.nasdaq.com/articles/strong-holiday-spending-helps-american-express-q4-results-2014-01-21
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nan
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nan
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American Express ( AXP ) was able to capitalize on strong U.S. holiday season sales, as net income for the fourth quarter of 2013 doubled the amount reported in 2012. Foreign exchange (FX) adjusted billed business was up 9%, driving a 5% increase in revenues. Lower net write-offs also allowed for a 17% decline in provisions for losses, further adding to the bottom line. The company's spend-centric model and closed-loop network have allowed it to maintain growth through a tough economic period in the last few years. Improvements in the economy will allow AmEx to further expand in the coming years.
To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). In our model, we are estimating the total income that can be returned to shareholders and discounting this value back to the present. American Express started a capital distribution plan in 1994 and has since returned 66% of capital generated back to shareholders. In the last two years, this percentage was higher; in 2012, the company returned 98% of capital generated while in 2013, the company returned 81% of capital generated. AmEx maintains a long term target of returning 50% of its capital to shareholders, however, on the basis of recent trends, we are forecasting an adjusted common actual & potential dividend payout ratio of 66% through 2020. Our $79 price estimate for the company's stock is at a discount of about 10% to the current market price.
See our complete analysis of Amex's stock here
Holiday Season Spending Trends
American consumers braved adverse weather conditions and kept up the holiday shopping spirit in 2013; the National Retail Federation reported a 3.9% increase in 2013 holiday retail sales. American Express, which earns half of its revenues from the U.S., reported a 9% increase in card-member spending which led to an 8% increase in revenues. Total cards-in-force increase from 52 million to 53.1 million.
AmEx generally targets a more affluent customer base, offering rewards and discounts to high spending customers. The average American Express household earns about $97,000 per year. Payment volume per transaction is around $150 for American Express cards, much higher than the average of $55 for competitors like Visa ( V ), MasterCard ( MA ) and Discover Financial ( DFS ). Data from the U.S. Department of Commerce shows that Americans are more inclined to spend; personal saving as a percentage of disposable personal income has gone down from 6.6% in the fourth quarter of 2012 to 4.9%. Disposable personal income increased 3% through the third quarter and was part of the reason for the spending trends through the fourth quarter.
Turning to growth prospects: according to the 2010 U.S. census, around 22% of the households in the U.S. earn more than $95,000 per year. These households form the primary customer base for American Express, and the company has achieved a penetration of nearly 50%. The improving job market, which saw the unemployment rate drop below 7% in December, should allow AmEx to further increase the number of cards-in-force in the coming years.
Third Party Growth
Outside the U.S., American Express is using a third-party model to expand its card-member and merchant base at cost levels that would not have been feasible on its own. Through the Global Network & Merchant Services (GNS) division, AmEx invites established financial institutions to issue cards carrying the signature American Express logo and also to act as merchant acquirers. This division accounts for 15% of the company's revenues but is a fast growing segment; transaction fees earned through third party issuers have increased by a compound annual growth rate of ~15% in the last four years, higher than the CAGR of ~9% for AmEx-issued cards in the U.S.
In the December quarter, American Express signed more GNS agreements to achieve growth. The total cards-in-force increased 8% over the last year to 40.7 million; in contrast, the number of international propriety cards-in-force is just 15.7 million. GNS card-billed business increased 12% during the fourth quarter (16% on an FX-adjusted basis) with high contributions from Japan and China. We expect further growth from the company in this segment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). American Express ( AXP ) was able to capitalize on strong U.S. holiday season sales, as net income for the fourth quarter of 2013 doubled the amount reported in 2012. AmEx maintains a long term target of returning 50% of its capital to shareholders, however, on the basis of recent trends, we are forecasting an adjusted common actual & potential dividend payout ratio of 66% through 2020.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). In the last two years, this percentage was higher; in 2012, the company returned 98% of capital generated while in 2013, the company returned 81% of capital generated. See our complete analysis of Amex's stock here Holiday Season Spending Trends American consumers braved adverse weather conditions and kept up the holiday shopping spirit in 2013; the National Retail Federation reported a 3.9% increase in 2013 holiday retail sales.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). In the last two years, this percentage was higher; in 2012, the company returned 98% of capital generated while in 2013, the company returned 81% of capital generated. American Express, which earns half of its revenues from the U.S., reported a 9% increase in card-member spending which led to an 8% increase in revenues.
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To arrive at a price estimate for the company, we have used a modification of the dividend discount model ( DDM ). In our model, we are estimating the total income that can be returned to shareholders and discounting this value back to the present. These households form the primary customer base for American Express, and the company has achieved a penetration of nearly 50%.
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bbcf230f-1894-4cfb-bcf7-9c3cf5367cd9
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717905.0
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2013-12-27 00:00:00 UTC
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Stratasys Ltd. (SSYS): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report
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DDM
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https://www.nasdaq.com/articles/stratasys-ltd-ssys-new-analyst-report-zacks-equity-research-zacks-equity-research-report
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nan
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nan
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Summary:
We have downgraded our long-term recommendation on Stratasys to Underperform after the company cuts the 2014 outlook and issued a weak guidance for 2015. The company mainly lowered its outlook to reflect an anticipated goodwill impairment charge and slower revenue growth at its MakerBot business. Moreover, the company is projecting its operating expenses to increase over the next two to three years as a result of its new investment plans. We are concerned about the company's declining margins which have been impacted by increase in sales of lower-margin products as well as higher acquisition related integration expenses. Furthermore, a high-cost business model and competition from big and small players remain the headwinds.
Overview:
Headquartered in Eden Prairie, MN, Stratasys, Ltd. (SSYS) is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs). The company's systems are also used in direct digital manufacturing (DDM) and rapid tooling applications. With the use of patented Fused Deposition Modeling (FDM) and PolyJet rapid prototyping processes, engineers and designers are able to create precise physical models, tools and three-dimensional (3D) prototypes out of plastic and other materials using workstation-based computer-aided design (CAD).
These prototypes are used for testing form, fit and function throughout the design and development process. Essentially, Stratasys' systems allow design engineers to develop highly complex geometrical designs using a wide range of high-performance engineering materials with in-office RP systems that require no chemical post processing, special venting or facility modification.
The company generally reports revenues under two segments. First, Product Revenues, which includes revenues generated through the sale of products and consumables. Second, Services Revenues, which include revenues generated from service offerings, such as RedEye paid parts, installation and maintenance, and other services. In fiscal 2013, Products and Services accounted for 86% and 14% of the total revenue, respectively.
The company competes in a marketplace that is still dominated by conventional methods of model-making and prototype development. Machinists and engineers working on blueprints or CAD files and using machining or manual methods generally perform prototype development and fabrication.
The company's competitors include 3D Systems Corp., EOS GmbH and EnvisionTEC GmbH in the prototype development and customized manufacturing processes. Stratasys competes with companies such as Delta Micro Factory, Affinia, Ultimaker, Printrbot, Leapfrog, Solidoodle and 3D Systems in the entry-level desktop 3D printers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's systems are also used in direct digital manufacturing (DDM) and rapid tooling applications. We are concerned about the company's declining margins which have been impacted by increase in sales of lower-margin products as well as higher acquisition related integration expenses. Machinists and engineers working on blueprints or CAD files and using machining or manual methods generally perform prototype development and fabrication.
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The company's systems are also used in direct digital manufacturing (DDM) and rapid tooling applications. Overview: Headquartered in Eden Prairie, MN, Stratasys, Ltd. (SSYS) is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs). Stratasys Ltd. (SSYS): Read the Full Research Report Want the latest recommendations from Zacks Investment Research?
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The company's systems are also used in direct digital manufacturing (DDM) and rapid tooling applications. Overview: Headquartered in Eden Prairie, MN, Stratasys, Ltd. (SSYS) is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs). With the use of patented Fused Deposition Modeling (FDM) and PolyJet rapid prototyping processes, engineers and designers are able to create precise physical models, tools and three-dimensional (3D) prototypes out of plastic and other materials using workstation-based computer-aided design (CAD).
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The company's systems are also used in direct digital manufacturing (DDM) and rapid tooling applications. With the use of patented Fused Deposition Modeling (FDM) and PolyJet rapid prototyping processes, engineers and designers are able to create precise physical models, tools and three-dimensional (3D) prototypes out of plastic and other materials using workstation-based computer-aided design (CAD). First, Product Revenues, which includes revenues generated through the sale of products and consumables.
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07c92777-6727-4a7e-8b12-4b6b3508c3ba
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717906.0
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2013-03-13 00:00:00 UTC
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UPDATE: Analyst Actions: CVR Refining Upgraded, Target Upped at Credit Suisse; Shares Gain 2.5%, Close To Yr Highs
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DDM
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https://www.nasdaq.com/articles/update-analyst-actions-cvr-refining-upgraded-target-upped-credit-suisse-shares-gain-25
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nan
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nan
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UPGRADING to OUTPERFORM (from Neutral) vs MLP Peers on Attractive 2013 Yield; Raising Ests & TP to $34 (from $32)
Bottom-line: "We raise our 2013 distribution forecast to $6.15/unit (vs. company guidance of $5.30-$6.30/unit) to account for 1Q13 guidance as well as our revised margin forecasts. Owners of CVRR benefit from a c19% 2013 yield (vs median MLP peer average of 13%) and a c10% mid-cycle yield based on WTI-Brent spreads that could prove conservative (industry consensus is $7-12/bbl in the long term). CVRR has self-help projects to boost mid-cycle distributable cash flow over time, logistics assets which could form the basis of a higher-multiple MLP within CVRR and the possibility of making refining acquisitions (i.e. while an acquisition could be deemed dilutive to a C-Corp refiner, the premium MLP multiple of CVRR allows for deals to be viewed as being accretive). We raise CVRR to Outperform (from Neutral) relative to the MLP universe."
Valuation: "We value CVRR using a Distribution Discount Model ( DDM ). Using an 11% cost of equity and mid-cycle EBITDA that is just 55% of the "supernormal" 2012 earnings, we arrive at $32/unit plus a $2/unit uplift for logistics. This could prove conservative if WTI-Brent settles out at a wider level than our $8/bbl forecast or if CVRR drives harder in the logistics MLP formation. We raise our TP to $34 from $32. We are raising our 2013/2014/2015 EPS estimates to $6.97/$3.40/$2.99 (from $6.03/$3.29/$2.93) respectively."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: "We value CVRR using a Distribution Discount Model ( DDM ). UPGRADING to OUTPERFORM (from Neutral) vs MLP Peers on Attractive 2013 Yield; Raising Ests & TP to $34 (from $32) Bottom-line: "We raise our 2013 distribution forecast to $6.15/unit (vs. company guidance of $5.30-$6.30/unit) to account for 1Q13 guidance as well as our revised margin forecasts. Using an 11% cost of equity and mid-cycle EBITDA that is just 55% of the "supernormal" 2012 earnings, we arrive at $32/unit plus a $2/unit uplift for logistics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Valuation: "We value CVRR using a Distribution Discount Model ( DDM ). UPGRADING to OUTPERFORM (from Neutral) vs MLP Peers on Attractive 2013 Yield; Raising Ests & TP to $34 (from $32) Bottom-line: "We raise our 2013 distribution forecast to $6.15/unit (vs. company guidance of $5.30-$6.30/unit) to account for 1Q13 guidance as well as our revised margin forecasts.
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Valuation: "We value CVRR using a Distribution Discount Model ( DDM ). UPGRADING to OUTPERFORM (from Neutral) vs MLP Peers on Attractive 2013 Yield; Raising Ests & TP to $34 (from $32) Bottom-line: "We raise our 2013 distribution forecast to $6.15/unit (vs. company guidance of $5.30-$6.30/unit) to account for 1Q13 guidance as well as our revised margin forecasts. Owners of CVRR benefit from a c19% 2013 yield (vs median MLP peer average of 13%) and a c10% mid-cycle yield based on WTI-Brent spreads that could prove conservative (industry consensus is $7-12/bbl in the long term).
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Valuation: "We value CVRR using a Distribution Discount Model ( DDM ). UPGRADING to OUTPERFORM (from Neutral) vs MLP Peers on Attractive 2013 Yield; Raising Ests & TP to $34 (from $32) Bottom-line: "We raise our 2013 distribution forecast to $6.15/unit (vs. company guidance of $5.30-$6.30/unit) to account for 1Q13 guidance as well as our revised margin forecasts. CVRR has self-help projects to boost mid-cycle distributable cash flow over time, logistics assets which could form the basis of a higher-multiple MLP within CVRR and the possibility of making refining acquisitions (i.e. while an acquisition could be deemed dilutive to a C-Corp refiner, the premium MLP multiple of CVRR allows for deals to be viewed as being accretive).
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717907.0
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2012-12-18 00:00:00 UTC
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40 Things Every Dividend Investor Should Know About Dividend Investing
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DDM
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https://www.nasdaq.com/articles/40-things-every-dividend-investor-should-know-about-dividend-investing-2012-12-18
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nan
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nan
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Dividend investing is a great way for investors to see a steady stream of returns on their investments. Though the world of dividend investing can seem conservative and basic on the surface, there is a lot to know in the dividend world that can help investors create long term wealth. Here are 40 things every dividend investor should know about dividend investing:
1. Dividends = Meaningful Portion of Stock Returns.
Going back over the past 80 years, dividends have accounted for more than 40% of the total returns of the S&P 500. It is important to note, though, that that has not been a steady or consistent ratio - capital gains tend to be considerably larger percentages during bull markets, while dividends make up much larger portions in weaker markets.
2. Ex-Dividend Dates Are Key
It is very important for investors who want to hold dividend-paying stocks to pay attention to timing and certain key dates. The ex-dividend date refers to the first day after a dividend is declared (the declaration date) that the owner of a stock will not be entitled to receive the dividend. Prior to the open of trading on the ex-dividend date, the exchange will mark down the price of the stock by the amount of the dividend. Those investors wishing to receive a declared dividend must buy the shares before the ex-dividend date to receive that dividend.
3. Dividends Come In Various Frequencies
There are really no hard and fast rules (in the United States, at least), regarding when a company can pay dividends. Tradition (and expectation) still carries a great deal of weight, though, and it has become the established norm for most regular corporations to pay dividends on a quarterly basis. Many well-known dividend-paying companies like Coca-Cola ( KO ) and Johnson & Johnson ( JNJ ) pay dividends on a quarterly basis.
What is commonplace in the United States is not necessarily so elsewhere. In many countries, dividends are declared and paid once or twice a year. Chinese oil and gas giant Petrochina ( PTR ) and British spirits giant Diageo ( DEO ) pay twice a year, while Novartis ( NVS ) and Siemens ( SI ) each pay annual dividends.
Although it is the norm in North America for companies to pay dividends quarterly, some companies do pay monthly. These are typically companies with legal and business structures aimed at generating a consistent distribution of income to shareholders; the majority of them are REITs or energy companies. Likewise, many ETFs (particularly those that invest heavily in income-generating assets like bonds) pay dividends on a monthly basis.
4. ADR Yields Can Be Confusing and Inconsistent
American Depository Receipts (or ADRs) offer investors a chance to invest in foreign companies. While these are basically simple instruments that trade like any other stock, they can be a little confusing and inconsistent when it comes to dividends and the reported yields on financial information sites.
Some of the trouble comes from how these sites calculate yields. Some sites will take the most recently-paid dividend and multiply it by the number of times the company pays a dividend in a year (typically one or two for most foreign companies). Other sites will simply use the total dividends paid over the past twelve months. Likewise, many sites tend to be slow or inconsistent in incorporating announced changes to, or declarations of, dividends.
Currency can also have a meaningful impact on ADR yields. ADR dividends are typically declared in the operating currency for the company, but paid to the ADR holders in dollars. How and when a financial site applies the exchange rate to this conversion can have a meaningful impact on the reported yield.
It is also important to note that the reported yield of an ADR is not necessarily what an investor will receive. Many countries require that companies paying dividends to foreign shareholders withhold taxes, reducing the dividend. ADR custodians are also allowed to deduct custody fees (basically, the expenses they charge for managing and maintaining the ADR) from the dividend, further reducing the yield. Both foreign withheld taxes and custody fees are typically deductible for individual tax purposes (at least when held in taxable accounts).
5. Dividends AreNot Capital Gains or Income
Dividend income is unusual in that it has typically already been taxed (corporations pay taxes on the income that they then use to pay dividends), but that does not shield it from additional taxation. Prior to the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Bush tax cuts"), stock dividends were generally taxed at the same rate as an investor's ordinary income.
With these tax cuts, a new category of "qualified dividends" was created, and those that qualified (which would include most regular corporate dividend payments) were taxed at a new, lower rate. From 2003 to 2007, qualified dividends were taxed at either 15% or 5% (if the individual's tax bracket was 10% or 15%). From 2008 to 2012, the tax rates for qualified dividends were 15% or 0% (again for investors in the 10% or 15% brackets).
It must be noted that depending on the resolution over the "fiscal cliff" tax rates on dividends might be altered.
6. Payout Ratios Above 100% Are A Red Flag
Dividends are supposed to be a mechanism by which companies share their financial success with the shareholders. While dividends do not, strictly speaking, have to come from earnings it is not sustainable for a company to pay out more than it earns.
Accordingly, it is important for investors to monitor a company's payout ratio. The payout ratio is simply the ratio of dividends in a specified period (typically the last twelve months) divided by the company's reported earnings over the same period. For simplicity's sake, most dividend payout ratios use the per-share dividend as the numerator and the earnings per share ( EPS ) as the denominator.
If a company has $1 per share in earnings and pays a $0.70 per share dividend, the payout ratio is 70%. Likewise, if the dividend were $0.10 the payout ratio would be 10%.
If the same company paid a dividend of $1.20 per share, the payout ratio would be 120% and investors would do well to ask how that company could hope to continue a dividend in excess of its earnings. Companies do try to maintain consistent (or rising) dividends, even in industries where year-to-year financial performance can vary. Consequently not all companies with a dividend payout ratio above 100% are paying an unsustainable dividend, but no company can indefinitely pay out more in dividends than it earns.
It is also worth noting, though, that "earnings" (and earnings per share) are a byproduct of accounting and not strictly real. Companies actually pay dividends out of the cash flow they generate, though it is not common to see payout ratios calculated on the basis of operating or free cash flow.
7. Effective Yield Is Based On Your Adjusted Cost Basis
One of the under-appreciated ways to evaluate dividends is in the context of the investor's own historical cost basis in the stock. "Effective yield" is a concept with multiple definitions in investing, but one definition includes evaluating dividend yield on the basis of an investor's own cost basis. This analysis helps to cover the deficiency of information offered by current yield.
Consider the following - a stock currently trades at $50 and pays a $2 dividend, meaning that the stock has a current yield of 4%. But if an investor bought that stock years before (and the stock price has increased since then), it's not an accurate reflection of the yield on the investment. If the investor bought the stock at $35, the current yield on that cost basis (what we're calling the effective yield here), is actually 5.7% ($2 divided by $35).
8. Current Yield Is Based On Different Calculations
Current yield is a relatively common concept in dividend investing. The current yield is simply the dividends paid per share divided by the price per share. If a company pays a $1 per share dividend and the stock price is $100, the current yield is 1%.
Yet not all sources calculate and report current yield the same way. While most sites report yield on the basis of four times the most recently paid or declared dividend, some pay on the basis of the dividends paid over the past 12 months.
Consider the following to see the difference - if the company in the prior example announced that it was increasing its dividend by 15% (to $1.15 per share), some sites would report the yield as 1.2% (1.115% rounded up), while some would continue to report 1% until the first payment at the higher rate, at which point the yield would move up to 1.04% (three quarters of the old $0.25/qtr dividend + one quarter of the new $0.2875 dividend).
9. Cumulative Dividends: Declared, Not Yet Paid
In some cases, corporations issue preferred stock that carries a right whereby any unpaid preferred dividends accumulate and must be fully paid before certain other payments (like common stock dividends) can be made. Unpaid dividends accumulate and this type of preferred stock is called "cumulative preferred."
This is not to be confused with a stock that is trading "cum-dividend," which refers to a stock where a dividend has been declared and current buyers are entitled to that dividend (cum-dividend means "with dividend"). Stocks cease to trade cum-dividend on their ex-dividend date.
10. Dividend Aristocrats: Exclusive Club
Investors will find many writers and websites that try to use catchy titles to draw attention to particularly attractive dividend-paying stocks. One title worth looking out for is "dividend aristocrat". Standard & Poors ("S&P") defines a dividend aristocrat as a company that has increased its dividend for 25 straight years, excluding special dividends.
11. Value Stocks With Dividend Discount Models ( DDM )
Dividend discount models work on the theory that the only real value to a shareholder is the dividend stream that a company produces (academic theory holds that capital gains and variability in share prices are unpredictable and simply the byproduct of investors adjusting their expectations for a company's future stream of dividends). Consequently, a dividend discount model attempts to project these dividends and discount them to a net present value per share that represents a fair value for the shares.
Arguably the most accurate way to run such a model is to project a company's dividends for as many years as possible, calculate a terminal growth rate, and then discount that back by the appropriate discount rate. That discount rate should be the cost of the company's equity, whether determined through the Capital Asset Pricing Model (CAPM) or some other method.
Some investors try to use a more simplified version of the model.
This version has the investor use next year's anticipated dividend (D1), divided by the cost of equity (r) minus the estimated perpetual growth rate of the dividend (g). As an example, if a company is projected to pay $1 per share in dividends next year, the growth rate is projected to be 5%, and the cost of equity is estimated to be 8%, then the fair value for the stock is $33.33.
Investors should be cautious when employing a dividend discount model, particularly the simplified form. In the case of all models, the output will only be as valuable as the quality of the inputs. In the case of the simplified form, there are numerous other problems to consider. The model assumes that a firm's cost of equity never changes, that the dividend growth rate never changes, and that the dividend growth rate is less than the cost of the firm's equity.
What's more, while the model is quite simple and requires very few inputs, the end result is very sensitive to the inputs - a small difference in the estimated growth rate or discount rate can result in large differences in the implied value of the equity (in the above example, changing the growth rate estimate by only 5% (to 5.25%) changes the fair value by 9% (to $36.36).
12. The Power of Re-Investing Dividends
Reinvesting dividends, particularly those paid by companies with a history of increasing their dividend over time, can be a powerful avenue to increasing total wealth over time. Although investors have to pay taxes on reinvested dividends in taxable accounts, that money nevertheless "stays active" in the stock and accumulates value.
The following chart illustrates the power of reinvested dividends. In the example below, a stock is assumed to evenly appreciate at a 10% rate per share, and increase its dividend by 4% per year. With an initial starting amount of $10,000, the investor that reinvested dividends would have $27,489 at the end of the eight years, while the investor who did not reinvest dividends would have $21,567 including the collected dividends.
13. Basics of DRIPs (Dividend Reinvestment Plans)
Dividend Reinvestment Plans (DRIPs) are investment plans offered directly by dividend-paying companies. When a shareholder enrolls in a DRIP, they no longer receive a company's quarterly dividends as cash, but rather the amount is used to directly purchase more shares from the company.
Although the investor is still obligated to pay taxes on the dividend amounts, the investor forgoes brokerage commissions to buy those shares and can buy fractional shares. In some cases, but not all, the sponsoring company may give a discount to the share price on these purchases. In many cases, an investor may choose to receive a certain percentage or amount of the dividend in cash, while having the remainder reinvested in shares.
There are some downsides to DRIP plans. In addition to the tax obligation, investors may find that tracking the cost basis of their holdings becomes more complicated, as each dividend that is reinvested changes the cost basis. It is also important to note that companies are not obligated to offer DRIPs, and not all do.
Seeing the popularity of DRIPs, may brokerages have begun to make them available to shareholders. These are not technically true DRIPs, but rather "synthetic" DRIPs that otherwise mimic the same features (though without the options to receive part of the dividend in cash or to acquire shares at a discounted price). There is often a charge/annual fee tied to participation in brokerage DRIPs.
14. Dividend Capture Strategies
Although investing in dividend-paying stocks and collecting those quarterly payments is considered consummately conservative equity investing, there are much more aggressive ways to play dividend-paying stocks, including dividend capture strategies.
In essence, dividend capture strategies aim to profit from the fact that stocks do not always trade in strictly logical or formulaic ways around the dividend dates. For instance, while a stock is marked down before trading begins on the ex-dividend date by the amount of the dividend, the stock does not necessarily maintain that adjustment when actual trading begins (or ends) that day. Likewise, the desire to reap the benefit of the upcoming dividend often spurs interest in the stock ahead of the ex-dividend date, leading to short periods of out-performance.
In its simplest form, dividend capture can involve tracking those stocks that, for whatever reason, do not generally trade down by the expected amount on the ex-dividend date. Investors may notice that although a given company pays a $1 dividend, the stock only declines by an average of $0.50 on the ex-dividend date. That being the case, an investor can buy the stock on the day prior to ex-dividend (say, for $100), sell it on the ex-dividend date (say for $99.50), and the collect the $1 dividend a few weeks later - leading to a total return of $0.50 on the trade (losing $0.50 on the stock, but gaining the $1 dividend).
A few words are in order about this strategy. First, because the stock is held for less than 61 days, the dividend is not eligible for the preferential tax treatment that qualified dividends get, though the capital loss on the stock trade offsets that to some extent. Second, this analysis does not include trading costs or the time value of money - if it costs more than $0.50 per share to do the trade and/or that money could earn more than $0.50 per share in interest, it makes no sense to do the trade.
There are more involved, longer-term dividend capture strategies as well. As some stocks do show a tendency to trade higher into the ex-dividend date, it can be possible to buy the shares ahead of time (sometimes even 61 days ahead or more, thereby triggering qualified dividend eligibility) and reap outsized returns by selling the stock on or before the ex-dividend date. Likewise, there are strategies involving options that take advantage of similar aberrations.
Academic theory would suggest that dividend capture cannot work - dividend capture is basically a form of arbitrage and market theory holds that savvy market participants will ensure that any "easy money" opportunities like this quickly vanish. To that end, it does seem to be the case that once people start widely discussing particular dividend capture stocks, those strategies seem to stop working.
Likewise, this is not a risk-free or cost-free strategy. The commission charges to get in and get out apply whether you make money or not, and investors pursuing dividend capture often find that they must execute the strategy across multiple names to diversify the risk. That ties up capital, which carries its own not-always-obvious costs.
Last and not least, this strategy takes a lot of work. It takes work to find suitable candidates, it takes an appetite for risk to pursue the strategy, and it takes discipline and attention to detail to successfully execute. This is absolutely not a strategy for the "I'll do it tomorrow" crowd, and quite frankly not all investors are going to find that the rewards (after subtracting the costs and those dividend capture attempts that fail) are worth the effort.
15. Companies Can't Fake Dividends
Some investors prefer dividend-paying stocks because dividends are real and trackable. A company's reported net income or earnings per share ( EPS ) is largely a product of accounting, and may have little or nothing to do with a company's actual financial health. As a result, devious executives and skilled accountants can make even a terrible company look healthy through the lens of earnings and reported income.
Dividends are different. Dividends either appear in shareholders' accounts or they don't - and if they don't, there are no accounting tricks that explain it. Dividends don't necessarily have to be paid out of income, but paying dividends creates a paper trail of cash that is much harder to manipulate.
This is not to say that a company's dividends are an accurate representation of a company's financial health or liquidity. Companies can, and have, paid dividends with borrowed money or sources of funds other than operating cash flow.
16. There's No Free Lunch
Dividends are basically a mechanism for companies to share their financial success with long-term shareholders, and short-term investors cannot simply buy and sell around dividend dates to reap risk-free profit. On the ex-dividend date (the date on and after which new buyers will not be entitled to the dividend), the price of the stock is marked down by the amount of the declared dividend. While shares do not always fully maintain this adjusted value (see our section on "Dividend Capture"), trading shares around dividend dates is not a simple alpha-generating strategy.
17. Dividends May Foreshadow Lower Growth
Some investors regard the initiation of a dividend as a very mixed blessing for a company. Generally speaking, companies should retain earnings when management can reinvest that capital into projects that are expected to generate a return in excess of the firm's cost of capital. If a company cannot identify enough projects that meet that minimum return, though, the shareholder-friendly move to make is to return that capital to shareholders in the form of dividends (and/or share buybacks).
When companies begin a dividend, and particularly when the company is a tech company like Microsoft ( MSFT ), Cisco ( CSCO ) or Apple ( AAPL ), some investors regard this as proof that the company can no longer find attractive avenues to growth.
Although this analysis contains an element of truth, it is in many cases exaggerated. Spending retained earnings on R&D does not guarantee future results, and there is not always (or even often) a direct relationship between the money invested in new a project and its future returns. Take the case of the Apple iPhone - Apple reportedly spent about $150 million over 30 months to develop the iPhone, a product that has generated billions in profits.
It does not automatically follow, then, that the next project is going to require billions of dollars to develop, or that investing billions into development will somehow "guarantee" a multibillion dollar product. Consequently, many innovative companies find that they simply generate more cash than they can effectively redeploy in their business. That makes returning that cash to shareholders more desirable than wasting it on inefficient or unfocused R&D or ill-considered (and over-priced) acquisitions.
It is typically true that a company's fastest growth days are behind by the time it initiates a dividend. As many dividend-paying companies like Abbott Labs ( ABT ), McDonald's ( MCD ), and IBM ( IBM ) have amply proven, though, the initiation of a dividend does not preclude further growth for a company.
18. Dividends Can Protect From Inflation
Owning dividend-paying stocks, particularly those that increase the dividend regularly, can be a better hedge against inflation than bonds. The problem with bonds (excluding floating-rate bonds) is that they pay fixed income streams over the life of the bond - the dividend payments in Year 20 are the same as Year 1. In periods of inflation, that means each successive interest payment is worth less in terms of purchasing power, and it also means that the purchasing power of the principal amount of the bond (which may not mature in 10, 20, or 30 years) could erode substantially as well.
With a dividend-paying stock, investors do not lose to inflation if the dividend grows as fast as (or faster than) the inflation rate. According to data collected by Robert Schiller at Yale University, dividends from the S&P 500 have grown at an annual rate of 4.2% since 1912, while the consumer price index (the most commonly accepted proxy for inflation) has risen by 3.3%.
19. Non-Cash Dividends
The vast majority of dividends paid today are paid in cash, but that has not always been, and still to this day is not always, the case. Dividends can be paid out in virtually anything of value, and companies have paid dividends in their own stock, other companies' stock and with physical goods.
Although it's uncommon now, many companies used to "pay" regular stock dividends whereby shareholders would get a certain number of shares for every share they already owned (typically a small fraction like one share for every 20). The reason pay is in quotation marks is that stock dividends really arent dividendsin the traditional sense - they are stock splits and the share price adjusts accordingly, meaning that shareholders are financially no better off post-stock dividend.
Some companies have used the dividend mechanism to spin off or divest holdings in other public companies. Many companies treat these as special or one-time dividends, not as regularly quarterly payments to shareholders. In these cases, shareholders receive actual shares of stock (or warrants or rights) to the other company as the dividend in proportion to their share ownership of the issuing company.
In some rare cases, companies have also used physical goods as dividends - Wrigley's gave shareholders packs of gum every year, and other companies (particularly in entertainment and dining businesses) would give coupons or vouchers to shareholders. Although these have usually been regarded by the issuing companies as gifts or perks of share ownership, they are technically dividends.
20.Some Tech Companies Can Pay Attractive Dividends
Tech companies are not traditionally major dividend payers, but that trend has changed as tech companies mature and accumulate more cash than they can effectively redeploy in growing the business.
IBM ( IBM ) has paid a dividend since the late 1960s, while Texas Instruments ( TXN ) has paid one since the early 1970s. Hewlett-Packard ( HPQ ) began paying a dividend in the early 1990s, and many of the tech stars of the 1980s and 1990s, including Microsoft ( MSFT ), Cisco ( CSCO ), Oracle ( ORCL ) and Intel ( INTC ) have initiated dividends over the past decade.
21. AT&T Is The U.S. Dividend King
Though Apple ( AAPL ) is by far the largest U.S. stock by market cap, it's far from the top dividend payer. That title belongs to AT&T ( T ), which paid out more than $10 billion in dividends last year. That means AT&T pays out about $19,000 in dividends to its shareholders each minute.
22. Dividends Can (And Do) Get Cut
Investors need to remember that dividends are a byproduct of the cash earnings of a business and that if the fortunes of a business decline, so too can the dividend. Companies as varied as General Motors, Kodak, and Woolworth all once paid robust dividends, until their fortunes changed severely (all three companies went bankrupt, and Woolworth disappeared from the business landscape years ago).
It doesn't even take total devastation to hurt a dividend. Virtually every U.S. bank that participated in the Troubled Asset Relief Program (TARP), and almost all U.S. banks were part of the program, was required to cut its dividend. Many reliable dividend-paying banks like U.S. Bancorp ( USB ) cut their dividends, and in some cases cut them dramatically.
23. Not All Dividend Payers Are "Stocks"
While dividend-paying stocks capture most of the attention of equity investors looking for investment income, they are not the only game in town. Many other financial instruments that trade like stocks offer investment income to their owners.
Exchange traded funds (ETFs) and exchange traded notes (ETNs) are often designed to replicate a stock market index, and many of these stocks pay dividends. Likewise, many ETFs and ETNs invest in income-generating securities like bonds. Consequently, many of these ETFs and ETNs pass on these dividends to shareholders.
Master limited partnerships (MLPs) are businesses organized under special rules that allow them to avoid corporate taxation and pass on a substantial portion of their income to owners. MLPs are not technically corporations, they do not issue shares (a share of an MLP is typically called a "unit"), and they do not pay dividends (they pay "distributions"), but in many respects owning an MLP is similar to owning a dividend-paying stock. Investors should note that the tax treatment of MLP distributions is different than that for common stock dividends.
Real estate investment trusts (REITs) are special types of businesses organized in a way to pass on substantial corporate earnings to unit holders. As the name suggests, these businesses have to be engaged in real estate operations in some way (owning/operating buildings or land, owning/trading mortgage bonds, etc.), and their earnings are free of corporate taxes so long as a legally-mandated minimum percentage of earnings are distributed to shareholders.
24. Dividend Tax Rates Have Varied Historically
Dividends are a relatively unusual example of double taxation within the U.S. tax system. A corporation generally pays dividends out of income - income that is taxed by the U.S. government. Those dividends are then once again subject to taxation is held in a taxable brokerage account.
It has been the case over history, then, that dividend tax rates have varied and not always in lock-step with ordinary income tax rates or capital gains tax rates. From 1913 to 1953, dividends were fully exempt from taxes except for a four-year period (1936-1939) where they were taxed at the ordinary income tax rate. From 1954 to 1985, a certain portion of annual dividend income was exempt from taxes ($50 from from '54 to '63, then $100 until 1980, and then the first $200 of combined dividends and interest income) and the remainder taxed at regular income tax rates. From 1985 to 2003 dividends were taxed at the recipient's ordinary income tax rate. From 2003 through 2012 "qualified dividends" were taxed at 15%, or in some cases 5% or 0% if the recipient was in the two lowest income tax brackets.
It must be noted that depending on the resolution over the "fiscal cliff" tax rates on dividends might be affected in 2013 and beyond.
25. MLPs Can Offer Attractive Dividends
Master Limited Partnerships (MLPs) are a special type of limited partnership (a way of organizing/creating a business) that can trade on public stock exchanges. MLPs are created primarily with the intent of generating income streams for the partners/unit holders, so it is not surprisingly that they can be good sources of investment income.
MLPs must generate the bulk (90%+) of their income from what the IRS deems to be "qualifying sources," which typically means activities related to the production, processing, transportation and distribution of energy (oil, natural gas, various distillates, coal, etc.). As partnerships, MLPs do not pay income tax and can pass on pro-rated shares of their depreciation to unit holders.
MLPs do not technically pay dividends - they pay distributions and distribute forms called K-1s to investors. The tax treatment of MLP distributions can be quite complex and will vary from investor to investor. Consequently, it's not possible to state that MLPs offer unilaterally better after-tax yields, but for many investors that is the case.
26. Certain Sectors Are Known For Stable Dividends
Within the dividend investing world, certain sectors have earned a reputation as reliable dividend-payers. In particular, utilities and telecoms are famous go-to sectors for dividend-paying companies. Prior to the housing market crash in the United States and the result recession, banks too were often seen as reliable dividend payers.
Sectors known for being reliable dividend-payers tend to share certain characteristics. In many cases, the companies face little or no competition (in many cases enjoying statutory monopolies), the services/goods they offer are essential or irreplaceable, and customers use and pay for the service at regular intervals (often monthly). This allows the companies to generate stable, predictable cash flow streams that support reliable dividend policies.
27. Tech Companies Are Starting To Boost Dividends
Historically speaking, tech has been a land of slim pickings for dividend investors. As tech companies founded in the 1970s and 1980s have matured, though, suddenly investors have a much more promising array of dividend-paying investment opportunities in the tech world.
There are multiple reasons why investors may want to consider dividend-paying technology stocks. To begin with, adding dividend-paying stocks in the tech sector diversifies a dividend investor's holdings and should reduce the internal correlation of the portfolio components.
Dividend-paying tech stocks may also offer more growth potential than dividend investors are commonly used to seeing. While it is true that many investors regard the initiation of a dividend as a sign that a company's best growth days are behind it (particularly in tech), that does not mean that a company will never grow again. Companies like McDonald's, Coca-Cola and IBM have paid dividends for decades and continued to grow as a business. This could be particularly true in the case of technology, where new product development does not typically require a proportionate reinvestment of capital (it typically takes less than $1 of reinvested capital in technology to generate an incremental dollar of capital).
Tech companies could also offer above-average dividend growth potential. Companies typically initiate dividends at low levels relative to their payout capability, giving the leeway these companies have to raise the payout ratio in the future. What's more, if tech companies can continue to grow faster than the market, it increases the probability of above-average dividend increases.
28. Don't Be Fooled By Capital Gains Distributions
Like mutual funds, ETFs can generate taxable capital gains when positions are sold at a profit, and like mutual funds, those gains are passed on the fundholder. While most ETFs are highly tax-efficient and run themselves in such a way as to minimize capital gains distributions, it is nevertheless true that ETFs will periodically distribute these taxable capital gains to shareholders. These distributions may look like dividends (and can generally be reinvested) and somefinancial newssites may erroneously include them in reported yields, but they are not dividends - they are capital gains and taxed at an investor's capital gains rate.
29. The Basics of One-Time Distributions.
While most U.S. companies that pay dividends strive to do so on a consistent schedule, some companies do pay special one-time dividends. These payments can serve many purposes; in some cases, it is a way for a company to share the proceeds of a major asset sale. In other cases, it may be part of a recapitalization of the business or a way of disgorging accumulated cash without effectively obligating the company to a higher ongoing dividend payout.
In some cases, companies can categorize these special one-time payouts as a "return of capital." In doing so, the distributions become tax-free to the recipients. It is also worth noting that companies will turn to special dividends as a way of accelerating capital return to shareholders before a significant change in tax policy, as has been seen in the last three months of 2012 ahead of the anticipated expiration of the favorable 15% tax rate on qualified dividends.
AOL ( AOL ) is one recent example of company using a one-time dividend to distribute the proceeds of an asset sale to shareholders. AOL management wishes to distribute $1.1 billion in surplus cash to investors and is choosing to do so through a $600 million accelerated share repurchase plan and a $5.15 per share special dividend. Nearly all of this cash was generated by the sale of 800 patents to Microsoft ( MSFT ) in April of 2012.
30. Companies Can Issue Stock Dividends
Not all dividends have to be paid in cash. Companies can pay dividends with additional shares of stock (stock dividends). When companies do this, they are effectively splitting the stock and the stock's price adjusts accordingly.
31. There's A Long History Of Dividends
The concept of dividends goes back so far that the question of the first company to pay a dividend is very much an open question. A French joint stock company, Société des Moulins du Bazacle, may well have been the first (the company was formed in 1250), and other companies formed in the 16 th century and early 17 th century like Muscovy Company and East India Company paid dividends to their shareholders.
The Hudson Bay Company was the first North American commercial corporation, and most likely the first to have paid a dividend. That first dividend (paid 14 years after the company's formation in 1670) was a whopper too - 50% of the par value of the stock.
32. There are Many Dividend Paying Stocks on U.S. exchanges
As of the end of November, 2012, Fidelity's database reported that 2,640 stocks that traded on U.S. exchanges paid a dividend. Additionally, the number of dividend-paying members of the S&P 500 surpassed 400 in the third quarter of 2012 and stood at the highest level since 1999, according to ABC News.
Dividend.com is a great resource to keep track of the definitive information for the vast amount of dividend paying equities.
33. Buffett says "Always Reinvest dividends!"
Famed investor Warren Buffett has come out in the past in favor of reinvesting dividends. Investors should note, though, that Buffett generally does not follow his own advice in this regard. While Buffett will add to his stock positions from time to time, he does not reinvest his dividends as a matter of course (Berkshire Hathaway has owned the same number of Coca-Cola shares for more than 15 years).
34. Dividend Increases: Leading Indicator
Analysts and investors often regard announced dividend increases as positive predictors of future corporate performance. One of the biggest reasons behind this is a seemingly unspoken agreement that dividends are supposed to go up or remain steady, but not decline; companies that announce lower dividends are typically perceived as weak/vulnerable, and investors often shun or sell off the stock. Consequently, corporate boards are typically hesitant to establish dividends that they are not confident they can maintain; if a company announces a higher dividend, it often signals to the market that management believes operating conditions have improved and are likely to stay at a higher level for the future.
35. Volatility of Dividend-Paying S&P 500 Stocks vs. Non-Dividend-Paying Stocks.
An analysis by Ned Davis Research showed that, through August of 2011, the standard deviation of returns for dividend-paying members of the S&P 500 was 17.1%, while the standard deviation for non-dividend-paying members was 25.69%.
36. REITs Can Deliver Big Distributions (And Big Risk)
Real estate investment trusts (REITs, for short) can be some of the largest dividend-payers in the stock market, due largely to the preferential tax treatment a company receives if it elects to organize as a REIT. Provided that a REIT distributes a certain percentage of its taxable income (presently 90%) to shareholders, the company's income is not taxed by the government.
As the name suggests, REITs were originally established for companies whose primary operations/investments were in real estate, and the majority of companies in the class do own and/or operate properties like office builds, apartments, hotels and shopping malls. While at least 75% of assets must be invested in real estate and 75% of gross revenue must come from rents or mortgage interest, there is some flexibility here, and investors can find companies like timberland operators organized as REITs.
The favorable tax treatment granted to REITs allows for larger distributions to shareholders, but these investments can be quite risky. Although real estate has a strong history of performance relative to inflation, many of the businesses owned/operated by REITs are economically sensitive - when the economy weakens, shopping mall traffic declines, office space vacancies increase, and so on. What's more, most REITs rely heavily upon debt financing and the combination of lower rents/interest income and persistent interest payments during recessions can put these companies into financial duress.
37. Royalty Trusts Can Be Attractive For Dividend Investors
Like REITs and MLPs, royalty trusts are created with the intention of shielding a business entity's earnings from taxes and passing the overwhelming majority of those earnings on to the shareholders as dividends (or, more technically, distributions).
The distributions of royalty trusts are usually generated from businesses related to oil/gas or mining. In most cases, a U.S. royalty trust will own a particular asset and lease that asset to operators who produce the oil or other resource and pay a percentage back to the trust. The trust uses that cash flow to pay its operating expenses and passes the remainder on to shareholders. The existence of the mineral asset typically assures some level of payout, though the dividend can vary considerably over time as the value of the commodity changes.
Canadian royalty trusts (aka CanRoys) used to be very popular vehicles for income-oriented investors, until a change in Canadian law basically did away with their advantaged tax status. There are U.S. royalty trusts, but the royalty trust structure is not especially popular. Unlike Canadian royalty trusts, U.S. royalty trusts are not allowed to acquire additional properties after their creation. Nevertheless, they are shielded from corporate taxation so long as they distribute 90% or more of their profits to shareholders, and there are a handful of U.S. royalty trusts in operation today.
38. Good Dividend Stocks Have More Than Just Good Yields
Successful dividend stock investing is more than just selecting those stocks with the most impressive yields. Dividend.com has created a system called DARS™ (Dividend Advantage Rating System) to reflect and evaluate these other critical factors.
Relative Strength - Relative strength is a well-established technical analysis concept that argues that strong stocks tend to continue outperforming, while weak stocks tend to continue underperforming. In DARS™, relative strength assesses where a stock is relative to its 50-day and 200-day moving averages to assess whether it is in an uptrend or not.
Overall Yield Attractiveness - This is a subjective measure that evaluates both the size of a company's dividend yield and its sustainability. Very high dividend yields tend to be quite unsustainable and the stocks tend to have above-average risks, while stocks with very low dividend yields are generally not worthwhile for long-term dividend investors.
Dividend Reliability - While there are numerous examples of reliable dividend payers that hit hard times, the reality is that the best predictor of a company's ability to continue paying dividends is the number of years it has done so. Accordingly, the DARS™ Dividend Reliability rating reflects not only the number of years that the company has paid dividends, but a subjective evaluation of how likely it is that current payout levels can continue.
Dividend Uptrend - The DARS™ Dividend Uptrend factor reflects the company's history of increasing its dividend, as well as a subjective evaluation as to the likelihood of future payout increases.
Earnings Growth - Dividends are ultimately dependent upon income and income growth. Accordingly, DARS™ tracks a company's a company's projected earnings growth to ascertain and rate its ability and likelihood to continue paying (and/or raising) its dividend.
39. Dividends Once Dominated Investing.
It may seem hard to believe, but dividends were once the preeminent consideration for equity investors. In fact, prior to the Crash of 1929 and the Great Depression, it was routinely the case that stocks were expected to yield more than bonds to compensate investors for the additional risk that equities carried. While the concept of capital appreciation was understood then, investing on the basis of expected capital appreciation was considered as something roughly equivalent to biotech investing today - something that was highly speculative and only suitable for the most aggressive risk-seeking investors.
40. Dividends: Antidote To Low Rates
Dividend-paying stocks can also offer investors an antidote to low interest rate environments. Since the Great Recession, interest rates have been at historically low levels, making it very difficult for risk-averse investors to find attractive yields. Although dividend-paying stocks are not as safe as government bonds, they do offer better after-tax yields. As of late November 2012, the S&P 500 offers a yield of approximately 2%, whereas two-year Treasuries offer 0.25%, 5-year Treasuries offer 0.63%, and 10-year Treasuries offer 1.63%.
While interest rates are determined in part by central bank policy, corporate dividend policy is more independent and corporate dividends can increase even while central banks are cutting rates (and reducing available yields on bonds).
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Value Stocks With Dividend Discount Models ( DDM ) Dividend discount models work on the theory that the only real value to a shareholder is the dividend stream that a company produces (academic theory holds that capital gains and variability in share prices are unpredictable and simply the byproduct of investors adjusting their expectations for a company's future stream of dividends). According to data collected by Robert Schiller at Yale University, dividends from the S&P 500 have grown at an annual rate of 4.2% since 1912, while the consumer price index (the most commonly accepted proxy for inflation) has risen by 3.3%. MLPs must generate the bulk (90%+) of their income from what the IRS deems to be "qualifying sources," which typically means activities related to the production, processing, transportation and distribution of energy (oil, natural gas, various distillates, coal, etc.).
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Value Stocks With Dividend Discount Models ( DDM ) Dividend discount models work on the theory that the only real value to a shareholder is the dividend stream that a company produces (academic theory holds that capital gains and variability in share prices are unpredictable and simply the byproduct of investors adjusting their expectations for a company's future stream of dividends). Basics of DRIPs (Dividend Reinvestment Plans) Dividend Reinvestment Plans (DRIPs) are investment plans offered directly by dividend-paying companies. MLPs Can Offer Attractive Dividends Master Limited Partnerships (MLPs) are a special type of limited partnership (a way of organizing/creating a business) that can trade on public stock exchanges.
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Value Stocks With Dividend Discount Models ( DDM ) Dividend discount models work on the theory that the only real value to a shareholder is the dividend stream that a company produces (academic theory holds that capital gains and variability in share prices are unpredictable and simply the byproduct of investors adjusting their expectations for a company's future stream of dividends). Dividends AreNot Capital Gains or Income Dividend income is unusual in that it has typically already been taxed (corporations pay taxes on the income that they then use to pay dividends), but that does not shield it from additional taxation. Consequently not all companies with a dividend payout ratio above 100% are paying an unsustainable dividend, but no company can indefinitely pay out more in dividends than it earns.
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Value Stocks With Dividend Discount Models ( DDM ) Dividend discount models work on the theory that the only real value to a shareholder is the dividend stream that a company produces (academic theory holds that capital gains and variability in share prices are unpredictable and simply the byproduct of investors adjusting their expectations for a company's future stream of dividends). MLPs do not technically pay dividends - they pay distributions and distribute forms called K-1s to investors. Companies Can Issue Stock Dividends Not all dividends have to be paid in cash.
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537f7739-3f55-4ef3-97c2-c2d07429a8f5
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717908.0
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2012-12-17 00:00:00 UTC
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Analyst Actions: AmeriGas Partners Coverage Initiated With Neutral, TP of $41; Shrs Flat, Near Yr Lows
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DDM
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https://www.nasdaq.com/articles/analyst-actions-amerigas-partners-coverage-initiated-neutral-tp-41-shrs-flat-near-yr-lows
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nan
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nan
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INITIATING Coverage with a NEUTRAL Rating and TP of $41: Leading Consolidator; However, Structural Decline Remains In Place
Initiating at Neutral with a $41 Target Price: While APU is the leading consolidator in a fragmented retail propane industry, the company's ability to sustain 5% distribution growth over the long term is likely to be challenged, given the structural decline in retail propane demand. Our $41 target price provides the potential for a 17% total return over the next 12 months.
Leading Consolidator; However, Structural Decline In Place: We believe that APU, the largest retail propane distributor, remains well positioned to continue to execute its growth through acquisition strategy and consolidate the market. Furthermore, APU's FY13 results should benefit from the synergies realized following its $2.6b Heritage acquisition and lower propane prices. That being said, the long-term structural decline in the demand for retail propane remains in place. As volumes decline, APU may find it difficult to maintain its 5% annual distribution growth target in the long term.
Furthermore, APU units may struggle to outperform in the near term owning to overhang associated with the potential for ETP to sell its 32% interest in APU beginning on January 13, 2013.
Valuation: We derive our target price of $41 for APU through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of 2.8% over the first five years, based on our model forecasts, distribution CAGR of 1.0% over the following five years, and a terminal growth rate of 0.0%. Our $41 target price implies a yield of 8.2% in F4Q13 (12 months out) based on a forecast annualized distribution of $3.36 per unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our target price of $41 for APU through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $41: Leading Consolidator; However, Structural Decline Remains In Place Initiating at Neutral with a $41 Target Price: While APU is the leading consolidator in a fragmented retail propane industry, the company's ability to sustain 5% distribution growth over the long term is likely to be challenged, given the structural decline in retail propane demand. Furthermore, APU's FY13 results should benefit from the synergies realized following its $2.6b Heritage acquisition and lower propane prices.
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Valuation: We derive our target price of $41 for APU through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $41: Leading Consolidator; However, Structural Decline Remains In Place Initiating at Neutral with a $41 Target Price: While APU is the leading consolidator in a fragmented retail propane industry, the company's ability to sustain 5% distribution growth over the long term is likely to be challenged, given the structural decline in retail propane demand. Leading Consolidator; However, Structural Decline In Place: We believe that APU, the largest retail propane distributor, remains well positioned to continue to execute its growth through acquisition strategy and consolidate the market.
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Valuation: We derive our target price of $41 for APU through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $41: Leading Consolidator; However, Structural Decline Remains In Place Initiating at Neutral with a $41 Target Price: While APU is the leading consolidator in a fragmented retail propane industry, the company's ability to sustain 5% distribution growth over the long term is likely to be challenged, given the structural decline in retail propane demand. Leading Consolidator; However, Structural Decline In Place: We believe that APU, the largest retail propane distributor, remains well positioned to continue to execute its growth through acquisition strategy and consolidate the market.
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Valuation: We derive our target price of $41 for APU through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $41: Leading Consolidator; However, Structural Decline Remains In Place Initiating at Neutral with a $41 Target Price: While APU is the leading consolidator in a fragmented retail propane industry, the company's ability to sustain 5% distribution growth over the long term is likely to be challenged, given the structural decline in retail propane demand. Leading Consolidator; However, Structural Decline In Place: We believe that APU, the largest retail propane distributor, remains well positioned to continue to execute its growth through acquisition strategy and consolidate the market.
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30ae6b5d-d88d-4274-af6f-19c32567c66e
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717909.0
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2012-12-13 00:00:00 UTC
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Analyst Actions: Breitburn Energy Partners Upgraded, Target Raised $1 At Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-breitburn-energy-partners-upgraded-target-raised-1-credit-suisse-2012-12
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nan
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nan
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Accretive Acquisitions Support Distribution Sustainability; UPGRADING to NEUTRAL (from Underperform); Raising TP to $19 (from $18)
Upgrading to Neutral (from Underperform): In our view, BBEP's execution of ~$600mm of accretive acquisitions in 2012 has improved the sustainability of the company's distribution longer term. That said, we do remain concerned about the sustainability of distribution growth owing to the impact of lower commodity and hedge prices. With units currently yielding 10.2% (slightly above the upstream MLP peer median), we believe this risk is fairly reflected in the market. Our $19 target prices (from $18) offers a 15.0% total return potential over the next 12 months.
Accretive Acquisitions Support Distribution Sustainability: Thus far in 4Q12, BBEP has announced ~$284mm of acquisitions. Combined, we estimate these acquisitions are ~$0.10/unit (~5%) accretive to DCF. We now forecast BBEP to maintain a 1.07x and 1.10x (vs. 1.06x and 1.06x) distribution coverage ratio in 2013 & 2014, respectively. This higher margin of safety should improve investors' level of comfort in this volatile commodity price environment.
Potential Equity Issuance in 1Q13: Pro-forma for the recent acquisitions, we estimate BBEP will be ~3.5x levered. We estimate BBEP would need to raise ~$150mm to reduce its leverage ratio to 3.0x.
Raising TP to $19 (from $18): Our $19 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of -2.1% over the first five years, 0.0% over the following five years and a terminal growth rate of 0.0%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Raising TP to $19 (from $18): Our $19 price target for BBEP is based on a three-stage distribution discount model ( DDM ). That said, we do remain concerned about the sustainability of distribution growth owing to the impact of lower commodity and hedge prices. With units currently yielding 10.2% (slightly above the upstream MLP peer median), we believe this risk is fairly reflected in the market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Raising TP to $19 (from $18): Our $19 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Accretive Acquisitions Support Distribution Sustainability; UPGRADING to NEUTRAL (from Underperform); Raising TP to $19 (from $18) Upgrading to Neutral (from Underperform): In our view, BBEP's execution of ~$600mm of accretive acquisitions in 2012 has improved the sustainability of the company's distribution longer term.
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Raising TP to $19 (from $18): Our $19 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Accretive Acquisitions Support Distribution Sustainability; UPGRADING to NEUTRAL (from Underperform); Raising TP to $19 (from $18) Upgrading to Neutral (from Underperform): In our view, BBEP's execution of ~$600mm of accretive acquisitions in 2012 has improved the sustainability of the company's distribution longer term. Accretive Acquisitions Support Distribution Sustainability: Thus far in 4Q12, BBEP has announced ~$284mm of acquisitions.
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Raising TP to $19 (from $18): Our $19 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Accretive Acquisitions Support Distribution Sustainability: Thus far in 4Q12, BBEP has announced ~$284mm of acquisitions. Potential Equity Issuance in 1Q13: Pro-forma for the recent acquisitions, we estimate BBEP will be ~3.5x levered.
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4129e1f3-f621-47f8-92b7-0e828ab0e514
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717910.0
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2012-12-10 00:00:00 UTC
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Analyst Actions: QR Energy Upgraded To Outperform, But Target Cut $2 at Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-qr-energy-upgraded-outperform-target-cut-2-credit-suisse-2012-12-10
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nan
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nan
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UPGRADING to OUTPERFORM (from Neutral); Lowering TP to $20 (from $22); With Equity Overhang Removed, Positive Catalysts on the Horizon.
Upgrading to OP (from Neutral): In our view, QRE is poised to outperform now that the equity overhang has been removed. Furthermore, we expect QRE to announce the dropdown of the Jay Field assets before year-end, which should be a positive catalyst. Longer term, we remain confident in QRE's ability to execute the acquire and exploit strategy given its sponsorship and experienced management team (Please refer to our note "QRE Initiation", published on October 19). Combined with QRE's 12% yield, we project a total return potential of 35% over the next 12 months.
Positive Catalysts on the Horizon: Over the next six months we see three positive catalysts that should help compress QRE's yield under 10% (in-line with peers). (1) We expect the Jay Field dropdown to be announced before year-end (~$350mm estimated). (2) 2013 guidance should be released in conjunction with 4Q12 earnings in early 2013. In our view, this guidance will reflect adequate cash flow to cover its distribution. (3) And lastly, we would not be surprise to see QRE announce additional third-party acquisitions in early 2013. Combined these events should alleviate concerns over distribution coverage and position the company to once again potentially discuss the possibility of distribution growth toward the end of 2013.
Reducing PT to $20 (from $22): We reduced our long-term distribution forecast owing to lower commodity prices. We derive our $20 price target through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of -2.0% (from 0.0%) over the first five years, 0.0% over the following five years and a terminal growth rate of 0.0%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We derive our $20 price target through a three-stage distribution discount model ( DDM ). UPGRADING to OUTPERFORM (from Neutral); Lowering TP to $20 (from $22); With Equity Overhang Removed, Positive Catalysts on the Horizon. Upgrading to OP (from Neutral): In our view, QRE is poised to outperform now that the equity overhang has been removed.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. We derive our $20 price target through a three-stage distribution discount model ( DDM ). UPGRADING to OUTPERFORM (from Neutral); Lowering TP to $20 (from $22); With Equity Overhang Removed, Positive Catalysts on the Horizon.
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We derive our $20 price target through a three-stage distribution discount model ( DDM ). Furthermore, we expect QRE to announce the dropdown of the Jay Field assets before year-end, which should be a positive catalyst. Positive Catalysts on the Horizon: Over the next six months we see three positive catalysts that should help compress QRE's yield under 10% (in-line with peers).
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We derive our $20 price target through a three-stage distribution discount model ( DDM ). Furthermore, we expect QRE to announce the dropdown of the Jay Field assets before year-end, which should be a positive catalyst. Combined with QRE's 12% yield, we project a total return potential of 35% over the next 12 months.
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8ca57494-b5b7-4662-8fa4-bf255f4fd275
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717911.0
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2012-11-01 00:00:00 UTC
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Guide to The 10 Most Popular Leveraged ETFs - ETF News And Commentary
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DDM
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https://www.nasdaq.com/articles/guide-to-the-10-most-popular-leveraged-etfs-etf-news-and-commentary-2012-11-01
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nan
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nan
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Over the past decade, Exchange Traded Funds (ETFs) have gained tremendous popularity due to many advantages and flexibility that they offer investors. Some of the factors point to tax efficiency when compared to mutual funds, cost effectiveness and transparency as well as entry and exit flexibility.
Clearly investors have embraced these factors as total ETF industry assets currently stands at $1.3 trillion after 34% year on year growth as of 30 th September 2012 (as published by the ETF Industry Association ).
The beauty of these products is that they allow investors to express their views about a particular asset class/economy/industry in the most efficient and cost effective manner, without the worries of a single company blowing up the return. Nevertheless, with over 1,400 products available in the market today, investors are more paralyzed by choice than anything (see Q3 ETF Asset Report: Investors Back in the Market? ).
At this point, knowing one's investment objective, time horizon and risk tolerance becomes top priority. At the same time, knowledge about individual products that they are investing in and their workings also become extremely important.
Most often investors fail to understand the inner workings of certain products that they invest in (especially the complex ones) and end up losing a great deal. For example, leveraged and inverse ETFs can certainly be great money making avenues for day traders or for a very short period of time. However, investors seeking to make money from these instruments by employing a traditional 'buy and hold' strategy are seem likely to lose over time (read Three Biggest Mistakes of ETF Investing ).
Leveraged ETFs in Focus
Traditionally, leveraged funds provide 2x or 3x the return of the benchmark performance. For example, a fund that provides 2x the exposure will rise by 2% if the benchmark rises by 1%, however, the flip side also holds true. If the index falls by 1%, the ETF will lose 2%.
On the other hand an inverse leveraged ETF bets against the positive movement of the underlying index, usually over a single day. Basically most of these products rebalance at the end of every session and are built to only give investors the corresponding amount of leverage over a single trading period.
This works really well over a short period of time, where the actual compounded positive returns of the fund exceed the standard compounded returns of the index. However, during oscillating markets marked with periods of high volatility, this phenomenon can hurt the investor leading to larger losses than what some investors might initially expect (read Leveraged and Inverse ETFs: Suitable Only For Short Term Trading ).
Therefore, in order for the investors to profit from these highly complex instruments it is prudent for them to understand 1) What actually is the product betting on?, 2) How does it plan to achieve returns 2x/3X the index?, 3) How often does it trade on a daily basis in order to ensure tight bid ask spreads?
This last factor, high trading volume which often leads to tight bid ask spreads, is very important for investors seeking to achieve the best price for their trade. For this reason, and given how volatile the leveraged market can be, obtaining a good price can be vital for overall returns.
In the light of the above statement, we have highlighted 10 of the most popular (i.e. with maximum average daily volume) leveraged ETFs that are available to investors.
The following table summarizes the key attributes that are prudent for any investor to consider before investing in these leveraged ETFs. While we have briefly described some of the key attributes of each below the table:
Table 1
For investors seeking for a leveraged play on the broad market via large cap basket we have highlighted four products. The ProShares Ultra S&P500 ETF (SSO), ProShares Ultra QQQ ETF (QLD), ProShares UltraPro S&P500 ETF (UPRO) and ProShares Ultra Dow30 ETF (DDM) are some of the large cap leveraged ETF which are most liquid.
As is evident from the table above, SSO and UPRO both track the S&P 500 Index. The former seeks investment results that correspond to twice the daily returns of the index whereas the latter seeks to provide 3x the returns of the S&P 500.
Despite having different investment objectives, both of these ETFs charge the same expense ratio of 95 basis points. Both these ETFs use swap contracts to achieve the leverage that they strive for.
It is also very important to note that both of these ETFs are rebalanced at the end of day, therefore generally on intraday basis the ETF returns will not be equal to stated objective of 2x or 3x the index returns (see more in the Zacks ETF Center ).
Thankfully, the ETFs provide the cushion of high traded volume and a substantial amount of popularity. SSO has an asset base of $1.57 billion coupled with an average daily volume of 7.07 million shares. On the other hand, UPRO has attracted $311.91 million in its asset base with an average daily volume of 2.32 million shares.
The ProShares Ultra Dow30 ETF (DDM) is the appropriate choice for investors seeking for a leveraged play on the Dow Jones Industrial Average Index. The Dow is by far one of the oldest stock indexes in the world. Its components are price weighted and it consists of only 30 large cap stocks (read Inside the Dow Jones Industrial Average ETF (DIA) ).
The ETF has been able to amass $214.96 million in its asset base since its inception back in June of 2006. DDM is rebalanced on a daily basis and provides exposure of 2x the daily returns of the Dow Jones Industrial Average Index. It uses a variety of Index swaps to achieve its stated leverage.
The ETF has an average daily volume of about 518,000 shares and charges 95 basis points in fees and expenses.
Launched in June of 2006, the ProShares Ultra QQQ ETF (QLD) seeks to provide 2x the daily returns of the Nasdaq100 Index. The NASDAQ 100 index includes the largest non financial companies from the U.S. as well as abroad.
The ETF has a fairly large asset base of $608.19 million and charges 0.95% as expense ratio. The ETF enters into swap contracts with different financial institutions to provide the leveraged exposure. QLD also has a very high average daily volume of around 3.72 million shares (see The Apple Effect and Nasdaq ETFs ).
Having discussed some of the large cap leveraged ETFs, let's now focus on a couple of small cap ones.
The Direxion Daily Small Cap Bull 3X Shares (TNA) and ProShares Ultra Russell2000 (UWM) are two ETFs which provide leveraged play on the Russell 2000 index.
The Index measures the performance of the small cap segment of the U.S. equity markets and is a subset of the Russell 3000 index. The benchmark is composed of 2000 stocks which make up roughly 10% of the total market capitalization of the Russell 3000 index.
TNA provides 3x leveraged exposure whereas UWM provides twice the daily returns of the Russell 2000 index. With an average daily volume within striking distance of 11 million shares, TNA is by far the most heavily traded leveraged ETF available in the market. The ETF also exhibits popularity as indicated by its asset base of $618.41 million (see Three Small Cap ETFs with Impressive Yields ).
On the other hand, UWM also enjoys a high average daily volume of more than a million shares and has been able to amass around $694 million since its inception in January of 2007.
Also, both of these ETFs utilize index swaps to provide the stated leverage. TNA charges an expense ratio of 95 basis points; however, UWM is slightly more expensive than TNA charging 0.98%.
The financial sector has been one of the top performing sectors this year. It has been pretty much leading the market rally so far this year after a disastrous performance last fiscal year.
The Direxion Daily Financial Bull 3X Shares (FAS) is an ETF that provides a leveraged play on the financial sector. It seeks investment returns that correspond to 3x the daily returns of the Russell 1000 Financial Services Index.
The index includes stocks of financial services companies from the entire spectrum of market capitalization (read Inside The Top Zacks Ranked Financial ETF ). With an asset base of $1.13 billion, FAS is one of the most popular leveraged financial equity ETFs. It charges investors 0.95% as expenses, and on an average does about 5.97 million shares daily.
The Direxion Daily Energy Bull 3X Shares (ERX) provides a leveraged exposure on the energy sector. It strives for 3x the daily returns of the Energy Select Sector Index, which measures the performance of companies from the oil and gas, consumable fuels, oil and gas equipments and services etc.
ERX aims for the leverage by entering into index swap contracts with different financial institutions. It charges an expense ratio of 95 basis points and does about 1.55 million shares daily in volume. It has an asset base of $255.05 million (read Uncertain about the Economy? Try Market Neutral ETFs ).
The ProShares Ultra Silver ETF (AGQ) seeks 2x the daily returns of silver bullions which are U.S Dollar denominated for London delivery. This means that along with the volatility in the individual commodity price, the ETF will also be subject to currency exchange rate between the U.S Dollars and the Pound Sterling.
Obviously being a leveraged ETF the fund takes long positions derivative instrument like silver futures and enters into silver forward contracts with different financial institutions to gain leverage on the underlying asset class (i.e. silver bullion).
The ETF is also rebalanced daily and charges investors 95 basis points in fees and expenses. AGQ has a fairly large asset base of $980.26 million and an average daily volume of about 1.48 million shares.
ProShares Ultra 7-10 Year Treasury (UST) is a daily rebalanced leveraged long ETF which is designed to generate 2x the daily returns of the Barclays Capital U.S. 7-10 Year Treasury Index. The index measures the performance of intermediate term Treasury bonds which have a residual maturity ranging from 7 to 10 years.
Most fixed income ETFs, especially long dated Treasury bonds, have seen tremendous rally in the recent past mainly thanks to the risk aversion of investors fuelled by the Eurozone debt crisis and concerns over global economic slowdown. The Federal Reserve's ultra low interest rate policy is also responsible for attracting investor appetite towards these instruments.
However, from the third quarter onwards, investors have started to show interest in the ETFs from riskier asset classes and high yield bond ETFs for higher current income thereby reducing the demand for the lower yielding Treasury bonds.
This has caused massive asset outflows from the Treasury Bond ETFs and negatively impacted the intermediate and longer dated Treasury Bond ETFs within this time frame (read Long Term Treasury ETFs: Ultimate QE3 Play? ).
Nevertheless, this seems to be a short term phenomenon as it is quite evident from the Fed's actions (such as Operation Twist) that the low interest rate scenario, especially in the Treasury bond front, is most likely to remain for quite some time.
Investors could go for a magnified exposure to the 7 - 10 year Treasury bond segment should consider UST for short term trades. The product has around $20 million in its asset base and on an average does a good daily volume of around 476,000 shares. It charges an expense ratio of 95 basis points.
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PRO-ULT SILVER (AGQ): ETF Research Reports
PRO-ULTR DOW30 (DDM): ETF Research Reports
DIR-EGY BULL 3X (ERX): ETF Research Reports
DIR-FIN BULL 3X (FAS): ETF Research Reports
PRO-ULTR QQQ (QLD): ETF Research Reports
PRO-ULTR S&P500 (SSO): ETF Research Reports
DIRX-SC BULL 3X (TNA): ETF Research Reports
PRO-ULT S&P500 (UPRO): ETF Research Reports
PRO-ULT 7-10 YT (UST): ETF Research Reports
PRO-ULTR R2000 (UWM): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ProShares Ultra S&P500 ETF (SSO), ProShares Ultra QQQ ETF (QLD), ProShares UltraPro S&P500 ETF (UPRO) and ProShares Ultra Dow30 ETF (DDM) are some of the large cap leveraged ETF which are most liquid. The ProShares Ultra Dow30 ETF (DDM) is the appropriate choice for investors seeking for a leveraged play on the Dow Jones Industrial Average Index. DDM is rebalanced on a daily basis and provides exposure of 2x the daily returns of the Dow Jones Industrial Average Index.
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The ProShares Ultra S&P500 ETF (SSO), ProShares Ultra QQQ ETF (QLD), ProShares UltraPro S&P500 ETF (UPRO) and ProShares Ultra Dow30 ETF (DDM) are some of the large cap leveraged ETF which are most liquid. Click to get this free report >> PRO-ULT SILVER (AGQ): ETF Research Reports PRO-ULTR DOW30 (DDM): ETF Research Reports DIR-EGY BULL 3X (ERX): ETF Research Reports DIR-FIN BULL 3X (FAS): ETF Research Reports PRO-ULTR QQQ (QLD): ETF Research Reports PRO-ULTR S&P500 (SSO): ETF Research Reports DIRX-SC BULL 3X (TNA): ETF Research Reports PRO-ULT S&P500 (UPRO): ETF Research Reports PRO-ULT 7-10 YT (UST): ETF Research Reports PRO-ULTR R2000 (UWM): ETF Research Reports To read this article on Zacks.com click here. The ProShares Ultra Dow30 ETF (DDM) is the appropriate choice for investors seeking for a leveraged play on the Dow Jones Industrial Average Index.
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The ProShares Ultra S&P500 ETF (SSO), ProShares Ultra QQQ ETF (QLD), ProShares UltraPro S&P500 ETF (UPRO) and ProShares Ultra Dow30 ETF (DDM) are some of the large cap leveraged ETF which are most liquid. Click to get this free report >> PRO-ULT SILVER (AGQ): ETF Research Reports PRO-ULTR DOW30 (DDM): ETF Research Reports DIR-EGY BULL 3X (ERX): ETF Research Reports DIR-FIN BULL 3X (FAS): ETF Research Reports PRO-ULTR QQQ (QLD): ETF Research Reports PRO-ULTR S&P500 (SSO): ETF Research Reports DIRX-SC BULL 3X (TNA): ETF Research Reports PRO-ULT S&P500 (UPRO): ETF Research Reports PRO-ULT 7-10 YT (UST): ETF Research Reports PRO-ULTR R2000 (UWM): ETF Research Reports To read this article on Zacks.com click here. The ProShares Ultra Dow30 ETF (DDM) is the appropriate choice for investors seeking for a leveraged play on the Dow Jones Industrial Average Index.
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DDM is rebalanced on a daily basis and provides exposure of 2x the daily returns of the Dow Jones Industrial Average Index. The ProShares Ultra S&P500 ETF (SSO), ProShares Ultra QQQ ETF (QLD), ProShares UltraPro S&P500 ETF (UPRO) and ProShares Ultra Dow30 ETF (DDM) are some of the large cap leveraged ETF which are most liquid. The ProShares Ultra Dow30 ETF (DDM) is the appropriate choice for investors seeking for a leveraged play on the Dow Jones Industrial Average Index.
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ef07721d-c0d9-4108-9409-4fc971f92543
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717912.0
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2012-10-19 00:00:00 UTC
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Analyst Actions: QR Energy Coverage Initiated With Neutral Rating, TP of $22 at Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-qr-energy-coverage-initiated-neutral-rating-tp-22-credit-suisse-2012-10-19
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nan
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nan
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INITIATING Coverage with a NEUTRAL Rating and TP of $22: Differentiated Upstream Growth Platform, but Waiting for Better Visibility
Initiating with Neutral rating and $22 TP: In our view, QRE's private equity sponsorship is a differentiating factor which will enable QRE to outperform its upstream MLP peers over time. Near term, however, we believe a Neutral rating is warranted until the partnership provides clarity on the headwinds it faces in 2013 and distribution growth visibility improves. Our target price of $22 provides the potential for a 15% total return over the next 12 months.
Clarity Is Coming: In our view, QRE's relatively high 9.3% yield is a function of the uncertainty about the magnitude of the impact of rising cash SG&A costs and the potential conversion of the company's preferred units. We believe QRE will provide guidance on the impact of these items in early 2013. And in our view, these headwinds are relatively well defined, more than manageable from a distribution coverage perspective and skewed to the downside.
Private Equity Sponsorship Drives Sustainable Long-Term Growth: In our view, QRE's relationship with its sponsor will lead to a steady stream of dropdowns and greater acquisition opportunities. This is a key differentiator for QRE relative to a crowded small-cap upstream MLP universe.
Valuation: We derive our $22 target price through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of 0.0% over the first five years and 0.0% over the following five years, and a terminal growth rate of 0.0%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our $22 target price through a three-stage distribution discount model ( DDM ). Near term, however, we believe a Neutral rating is warranted until the partnership provides clarity on the headwinds it faces in 2013 and distribution growth visibility improves. Clarity Is Coming: In our view, QRE's relatively high 9.3% yield is a function of the uncertainty about the magnitude of the impact of rising cash SG&A costs and the potential conversion of the company's preferred units.
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Valuation: We derive our $22 target price through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $22: Differentiated Upstream Growth Platform, but Waiting for Better Visibility Initiating with Neutral rating and $22 TP: In our view, QRE's private equity sponsorship is a differentiating factor which will enable QRE to outperform its upstream MLP peers over time. Our assumptions include a discount rate of 9.0%, distribution CAGR of 0.0% over the first five years and 0.0% over the following five years, and a terminal growth rate of 0.0% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our $22 target price through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $22: Differentiated Upstream Growth Platform, but Waiting for Better Visibility Initiating with Neutral rating and $22 TP: In our view, QRE's private equity sponsorship is a differentiating factor which will enable QRE to outperform its upstream MLP peers over time. Our assumptions include a discount rate of 9.0%, distribution CAGR of 0.0% over the first five years and 0.0% over the following five years, and a terminal growth rate of 0.0% The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our $22 target price through a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and TP of $22: Differentiated Upstream Growth Platform, but Waiting for Better Visibility Initiating with Neutral rating and $22 TP: In our view, QRE's private equity sponsorship is a differentiating factor which will enable QRE to outperform its upstream MLP peers over time. Near term, however, we believe a Neutral rating is warranted until the partnership provides clarity on the headwinds it faces in 2013 and distribution growth visibility improves.
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dd9c04c3-d93a-42a2-bc06-b55ba7eae227
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717913.0
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2012-09-24 00:00:00 UTC
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Analyst Actions: EQT Midstream Partners Downgraded To Neutral; Shrs Down 2.6%
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DDM
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https://www.nasdaq.com/articles/analyst-actions-eqt-midstream-partners-downgraded-neutral-shrs-down-26-2012-09-24
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nan
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nan
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DOWNGRADE to NEUTRAL (from Outperform) on Valuation. Hold $30TP. Thesis on Strong Distr Growth Intact.
Downgrade to Neutral (from Outperform) on Valuation: EQM hasn't looked back since its IPO and has generated handsome returns for its investors. (Please refer to the Initiation report published on July, 23) Based on its annualized minimum quarterly distribution, the MLP is currently yielding a rich 4.7%. Although we are still confident about EQM's potential based on organic growth and future drop-down acquisitions, we believe the potential is reflected in the price of the units. Including the forecast NTM distribution of $1.46/unit, we project total return potential of (5%) - 11.5%, supportive of downgrading the units to a Neutral rating.
Investment Thesis for Strong Distribution Growth Potential Remains Intact: EQM is well positioned to drive long-term distribution growth for the following reasons: (1) its parent, EQT Corp ( EQT ) has a large portfolio of mid-stream assets that can be dropped down to EQM; (2) no direct commodity exposure with a large portion of its cash flows based on fee-based contracts with remaining weighted average life of ~9.5 years; (3) no debt on its balance sheet supporting future financing requirements.
Main Catalysts/Risks to Our View: Risks to our outlook/TP include:
1) EQM's drop-down announcements are significantly above/below our expected $200-250mm/year and/or 2) increased/decreased visibility around its organic growth potential due to higher/lower development of the Marcellus shale by producers.
Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our $30 price target implies a yield of 5.1% in 2Q13 (payable nearly 12 months out) based on a forecasted annualized distribution of $1.52/unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Downgrade to Neutral (from Outperform) on Valuation: EQM hasn't looked back since its IPO and has generated handsome returns for its investors. Investment Thesis for Strong Distribution Growth Potential Remains Intact: EQM is well positioned to drive long-term distribution growth for the following reasons: (1) its parent, EQT Corp ( EQT ) has a large portfolio of mid-stream assets that can be dropped down to EQM; (2) no direct commodity exposure with a large portion of its cash flows based on fee-based contracts with remaining weighted average life of ~9.5 years; (3) no debt on its balance sheet supporting future financing requirements.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Although we are still confident about EQM's potential based on organic growth and future drop-down acquisitions, we believe the potential is reflected in the price of the units. Investment Thesis for Strong Distribution Growth Potential Remains Intact: EQM is well positioned to drive long-term distribution growth for the following reasons: (1) its parent, EQT Corp ( EQT ) has a large portfolio of mid-stream assets that can be dropped down to EQM; (2) no direct commodity exposure with a large portion of its cash flows based on fee-based contracts with remaining weighted average life of ~9.5 years; (3) no debt on its balance sheet supporting future financing requirements.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Although we are still confident about EQM's potential based on organic growth and future drop-down acquisitions, we believe the potential is reflected in the price of the units. Investment Thesis for Strong Distribution Growth Potential Remains Intact: EQM is well positioned to drive long-term distribution growth for the following reasons: (1) its parent, EQT Corp ( EQT ) has a large portfolio of mid-stream assets that can be dropped down to EQM; (2) no direct commodity exposure with a large portion of its cash flows based on fee-based contracts with remaining weighted average life of ~9.5 years; (3) no debt on its balance sheet supporting future financing requirements.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Although we are still confident about EQM's potential based on organic growth and future drop-down acquisitions, we believe the potential is reflected in the price of the units. Including the forecast NTM distribution of $1.46/unit, we project total return potential of (5%) - 11.5%, supportive of downgrading the units to a Neutral rating.
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dcfe0129-e741-4396-a401-fabcf3dbf6f7
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717914.0
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2012-07-23 00:00:00 UTC
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Analyst Actions: EQT Midstream Partners Cover Initiated With Outperform, TP of $30 at Credit Suisse; Hits Yr Highs Today
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DDM
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https://www.nasdaq.com/articles/analyst-actions-eqt-midstream-partners-cover-initiated-outperform-tp-30-credit-suisse-hits
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nan
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nan
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Growth in Marcellus and Sponsor Dropdowns Drive Positive Outlook; INITIATING Coverage with an OUTPERFORM Rating & TP of $30
Initiating Coverage at Outperform: We are initiating coverage of EQM with an Outperform rating and a $30 target price. Based on our target price and distribution growth forecasts, EQM provides a one-year total return potential of ~23%. EQM offers a good risk/reward profile within our coverage universe tied to the growth in infrastructure development in the Appalachian basin.
Poised for Strong Distribution Growth following Successful IPO: Post its IPO, EQM is well positioned to drive long-term distribution growth, given (1) its sponsor EQT Corp. ( EQT ) has a large portfolio of midstream assets in the Marcellus shale play that can be dropped down to EQM; (2) no direct commodity exposure with a large portion of its cash flows based on long-term fixed fee-based contracts with a remaining weighted average life of ~9.5 years; and (3) a strong balance sheet supporting future financing requirements. Our model assumes ~$1.0B of dropdowns from EQT over the next four years at an attractive EBITDA multiple of 9.0 times. In our view, EQM should be able to grow its distributions at a 10.2% CAGR over the next five years through a combination of organic growth and dropdowns.
Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our DDM assumptions include a discount rate of 9.0%, distribution CAGR of 10.2% over the first five years and 3.4% over the following five years, and a terminal growth rate of 1.5%. Our $30 price target implies a yield of 5.1% in the 2Q13 (12 months out) based on a forecasted annualized distribution of $1.52 per unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our DDM assumptions include a discount rate of 9.0%, distribution CAGR of 10.2% over the first five years and 3.4% over the following five years, and a terminal growth rate of 1.5%. Based on our target price and distribution growth forecasts, EQM provides a one-year total return potential of ~23%.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our DDM assumptions include a discount rate of 9.0%, distribution CAGR of 10.2% over the first five years and 3.4% over the following five years, and a terminal growth rate of 1.5%. Growth in Marcellus and Sponsor Dropdowns Drive Positive Outlook; INITIATING Coverage with an OUTPERFORM Rating & TP of $30 Initiating Coverage at Outperform: We are initiating coverage of EQM with an Outperform rating and a $30 target price.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our DDM assumptions include a discount rate of 9.0%, distribution CAGR of 10.2% over the first five years and 3.4% over the following five years, and a terminal growth rate of 1.5%. Growth in Marcellus and Sponsor Dropdowns Drive Positive Outlook; INITIATING Coverage with an OUTPERFORM Rating & TP of $30 Initiating Coverage at Outperform: We are initiating coverage of EQM with an Outperform rating and a $30 target price.
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Valuation: We derive our $30 target price by applying a combination of three-stage distribution discount model ( DDM ), EV/EBITDA, and target yield, giving us a valuation range of $27-32. Our DDM assumptions include a discount rate of 9.0%, distribution CAGR of 10.2% over the first five years and 3.4% over the following five years, and a terminal growth rate of 1.5%. Growth in Marcellus and Sponsor Dropdowns Drive Positive Outlook; INITIATING Coverage with an OUTPERFORM Rating & TP of $30 Initiating Coverage at Outperform: We are initiating coverage of EQM with an Outperform rating and a $30 target price.
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c1da9ebe-7222-45f0-b9b1-429550760404
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717915.0
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2012-06-27 00:00:00 UTC
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Analyst Actions: Breitburn Energy Partners Coverage Initiated With Neutral, TP of $16
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DDM
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https://www.nasdaq.com/articles/analyst-actions-breitburn-energy-partners-coverage-initiated-neutral-tp-16-2012-06-27
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nan
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nan
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INITIATING Coverage with a NEUTRAL Rating and Target Price of $16; Shifting from Growth to Preservation.
Initiating at Neutral: We initiate coverage of BBEP with a Neutral rating and $16 target price. In our view, BBEP's unit price fairly reflects the company's slowing distribution growth prospects. Based on the current price, we forecast a total return of 10%.
Shifting from Growth to Preservation: We see BBEP's focus shifting from growing the distribution to preserving it. Following a period of renewed growth at the partnership, BBEP faces a series of headwinds in 2013-14 owing to (1) a backwardated hedge portfolio and (2) lower commodity prices.
Acquisitions Needed: To ensure its current distribution is maintained, we estimate BBEP needs to complete ~$1b of acquisitions annually to offset the dilutive impact of lower commodity prices. Given the magnitude of this number, we believe BBEP may be forced to reduce maintenance capital expenditures and/or borrow from its revolving credit facility to maintain the current distribution in 2013/2014. As things stand today, we believe BBEP is capable of maintaining its distribution through these challenges, however BBEP's access to and cost of capital will be the key factors to monitor.
Valuation: Our $16 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of -5.1% over the first five years, 0.0% over the following five years and a terminal growth rate of 0.0%. Our $16 price target implies a yield of 11.4% in 1Q13 (12 months out) based on a forecast annualized distribution of $1.82 per unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: Our $16 price target for BBEP is based on a three-stage distribution discount model ( DDM ). In our view, BBEP's unit price fairly reflects the company's slowing distribution growth prospects. Following a period of renewed growth at the partnership, BBEP faces a series of headwinds in 2013-14 owing to (1) a backwardated hedge portfolio and (2) lower commodity prices.
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Valuation: Our $16 price target for BBEP is based on a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and Target Price of $16; Shifting from Growth to Preservation. Initiating at Neutral: We initiate coverage of BBEP with a Neutral rating and $16 target price.
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Valuation: Our $16 price target for BBEP is based on a three-stage distribution discount model ( DDM ). Initiating at Neutral: We initiate coverage of BBEP with a Neutral rating and $16 target price. In our view, BBEP's unit price fairly reflects the company's slowing distribution growth prospects.
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Valuation: Our $16 price target for BBEP is based on a three-stage distribution discount model ( DDM ). INITIATING Coverage with a NEUTRAL Rating and Target Price of $16; Shifting from Growth to Preservation. In our view, BBEP's unit price fairly reflects the company's slowing distribution growth prospects.
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27e85e55-20d6-4838-9623-9aa4b74eac4b
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717916.0
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2012-04-12 00:00:00 UTC
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Analyst Actions: Energy Transfer Partners Coverage at Credit Suisse Reinstated With Outperform and TP of $52
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DDM
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https://www.nasdaq.com/articles/analyst-actions-energy-transfer-partners-coverage-credit-suisse-reinstated-outperform-and
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nan
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nan
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Reinstating Coverage at Outperform: We are reinstating coverage of ETP with an Outperform rating and $52 target price. ETP units offer a compelling current yield of 7.8% combined with the potential for modest distribution growth beyond 2012.
Navigating Through Headwinds: In 2012, ETP faces two distinct headwinds: (1) low natural gas prices and (2) sizeable equity financing needs. The weak natural gas price environment is likely to continue to negatively impact the profitability of ETP's natural gas pipelines and storage assets offsetting growth from its midstream segment. Furthermore, ETP needs to issue ~$1b in equity during 2012 to reduce leverage and support its investment grade credit rating based on our calculations. All told, we expect ETP to maintain a coverage ratio of 0.92x in 2012.
Midstream and NGLs Provide Long-Term Growth: Beyond 2012, ETP will benefit from its ~$3b Midstream and NGLs organic growth capex program. We expect meaningful accretion from these projects to begin in 2013 thereby enabling ETP to again cover and increase its quarterly distribution.
Valuation: We derive our $52 TP through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 8.5%, distribution CAGR of 1.4% over the first five years, distribution CAGR of 1.5% over the following five years, and a terminal growth rate of 1.5%. Our $52 implies a yield of 6.9% in 4Q12 (12 months out) based on a forecast annualized distribution of $3.58unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Valuation: We derive our $52 TP through a three-stage distribution discount model ( DDM ). ETP units offer a compelling current yield of 7.8% combined with the potential for modest distribution growth beyond 2012. Furthermore, ETP needs to issue ~$1b in equity during 2012 to reduce leverage and support its investment grade credit rating based on our calculations.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Valuation: We derive our $52 TP through a three-stage distribution discount model ( DDM ). Reinstating Coverage at Outperform: We are reinstating coverage of ETP with an Outperform rating and $52 target price.
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Valuation: We derive our $52 TP through a three-stage distribution discount model ( DDM ). Reinstating Coverage at Outperform: We are reinstating coverage of ETP with an Outperform rating and $52 target price. The weak natural gas price environment is likely to continue to negatively impact the profitability of ETP's natural gas pipelines and storage assets offsetting growth from its midstream segment.
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Valuation: We derive our $52 TP through a three-stage distribution discount model ( DDM ). ETP units offer a compelling current yield of 7.8% combined with the potential for modest distribution growth beyond 2012. The weak natural gas price environment is likely to continue to negatively impact the profitability of ETP's natural gas pipelines and storage assets offsetting growth from its midstream segment.
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ea47ff71-2199-4406-93de-37930728e206
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717917.0
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2012-04-12 00:00:00 UTC
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Analyst Actions: Energy Transfer Equity Coverage Reinstated With Outperform, TP of $52 at Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-energy-transfer-equity-coverage-reinstated-outperform-tp-52-credit-suisse
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nan
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nan
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Reinstating at Outperform: We are reinstating coverage of ETE with an Outperform rating and $52 target price. In our view, ETE's distribution growth potential is underappreciated and will become apparent as the company integrates the acquisition of Southern Union.
Benefits of Southern Union Acquisition: Despite paying a full multiple for Southern Union ( SUG ), we believe the acquisition enhances ETE's risk and growth profile. ETE has added stable fee-based pipeline operations and significantly expanded its midstream footprint. Additional upside may come from transforming its Lake Charles terminal into an LNG export facility.
Simplification in the Cards LT May Unlock Value: In our view, ETE will simplify its structure longer term by selling or dropping down the remaining Southern Union assets to Energy Transfer Partners ( ETP ), and potentially merging ETP and Regency Energy Partners ( RGP ) given ETE is the general partner of both MLPs. As ETE simplifies its structure, we believe ETE shares may receive a valuation uplift.
Execution Risk Remains: In our view, the largest risk to the story remains execution. With the Southern Union acquisition behind them, the largest hurdle remaining is the integration/sale of ETE's newly acquired assets.
Valuation: We derive our $52 TP for ETE through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.0%, distribution CAGR of 7.7% over the first five years, distribution CAGR of 5.0% over the following five years, and a terminal growth rate of 2.0%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Valuation: We derive our $52 TP for ETE through a three-stage distribution discount model ( DDM ). In our view, ETE's distribution growth potential is underappreciated and will become apparent as the company integrates the acquisition of Southern Union. ETE has added stable fee-based pipeline operations and significantly expanded its midstream footprint.
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Valuation: We derive our $52 TP for ETE through a three-stage distribution discount model ( DDM ). In our view, ETE's distribution growth potential is underappreciated and will become apparent as the company integrates the acquisition of Southern Union. Simplification in the Cards LT May Unlock Value: In our view, ETE will simplify its structure longer term by selling or dropping down the remaining Southern Union assets to Energy Transfer Partners ( ETP ), and potentially merging ETP and Regency Energy Partners ( RGP ) given ETE is the general partner of both MLPs.
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Valuation: We derive our $52 TP for ETE through a three-stage distribution discount model ( DDM ). In our view, ETE's distribution growth potential is underappreciated and will become apparent as the company integrates the acquisition of Southern Union. Benefits of Southern Union Acquisition: Despite paying a full multiple for Southern Union ( SUG ), we believe the acquisition enhances ETE's risk and growth profile.
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Valuation: We derive our $52 TP for ETE through a three-stage distribution discount model ( DDM ). Reinstating at Outperform: We are reinstating coverage of ETE with an Outperform rating and $52 target price. In our view, ETE's distribution growth potential is underappreciated and will become apparent as the company integrates the acquisition of Southern Union.
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199d354e-f2d2-44e4-b082-2e351e4510a1
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717918.0
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2012-03-30 00:00:00 UTC
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Analyst Actions: Exterran Partners L.P. Coverage Initiated With Neutral, TP of $23 at Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-exterran-partners-lp-coverage-initiated-neutral-tp-23-credit-suisse-2012
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nan
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nan
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MLP Play on U.S. Natural Gas Compression Services; INITIATING Coverage with a NEUTRAL Rating and Target Price of $23.
Initiating at Neutral: We are initiating coverage on Exterran Partners, L.P. with a Neutral rating and target price of $23. EXLP, a master limited partnership and its sponsor Exterran Holdings ( EXH ), are the dominant providers of natural gas compression services in the United States. Since its initial public offering (IPO) in October 2006, EXLP's growth has been driven by the dropdown (acquisition) of compression assets from its sponsor. Our Neutral rating reflects: i) potential headwinds from low natural gas prices on the demand for compression services and, ii) evidence of progress in the company's cost cutting initiatives to improve profit margins.
Challenging Market Ahead: EXLP may find it difficult to improve its operating margin and maintain asset utilization in a low natural gas price environment. Demand for compression may fall if producers elect to shut in wells due to the collapse in natural gas prices. Typically, in a normal gas price environment, demand for compression increases as producing natural gas fields age requiring higher well pressure to maintain production levels.
Liquids Rich Natural Gas Plays Create Incremental Demand for Compression: EXLP/EXH are building higher horsepower compression units to meet growing infrastructure development in liquids rich shale plays. However, we believe that this positive emerging trend may be offset by a decline in compressor utilization in conventional dry natural gas basins.
Valuation: We derive our target price of $23 through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 9.5%, distribution CAGR of 0.3% over the first five years, 1.0% over the following five years and a terminal growth rate of 1.0%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Valuation: We derive our target price of $23 through a three-stage distribution discount model ( DDM ). EXLP, a master limited partnership and its sponsor Exterran Holdings ( EXH ), are the dominant providers of natural gas compression services in the United States. Our Neutral rating reflects: i) potential headwinds from low natural gas prices on the demand for compression services and, ii) evidence of progress in the company's cost cutting initiatives to improve profit margins.
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Valuation: We derive our target price of $23 through a three-stage distribution discount model ( DDM ). MLP Play on U.S. Natural Gas Compression Services; INITIATING Coverage with a NEUTRAL Rating and Target Price of $23. Challenging Market Ahead: EXLP may find it difficult to improve its operating margin and maintain asset utilization in a low natural gas price environment.
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Valuation: We derive our target price of $23 through a three-stage distribution discount model ( DDM ). MLP Play on U.S. Natural Gas Compression Services; INITIATING Coverage with a NEUTRAL Rating and Target Price of $23. Our Neutral rating reflects: i) potential headwinds from low natural gas prices on the demand for compression services and, ii) evidence of progress in the company's cost cutting initiatives to improve profit margins.
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Valuation: We derive our target price of $23 through a three-stage distribution discount model ( DDM ). MLP Play on U.S. Natural Gas Compression Services; INITIATING Coverage with a NEUTRAL Rating and Target Price of $23. Challenging Market Ahead: EXLP may find it difficult to improve its operating margin and maintain asset utilization in a low natural gas price environment.
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e7c59a65-571d-4d11-895f-cd8998b37c6a
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717919.0
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2012-03-21 00:00:00 UTC
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Analyst Actions: Inergy L.P Coverage Initiated With Outperform, Target Price of $19 at Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-inergy-lp-coverage-initiated-outperform-target-price-19-credit-suisse-2012
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nan
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nan
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Looking Past the Distribution Cut; INITIATING Coverage with an OUTPERFORM Rating and Target Price of $19.
Initiating at Outperform: We are initiating coverage of NRGY with an Outperform rating and target price of $19. While units may exhibit elevated volatility until the distribution is cut, we would argue fundamentals have reached a trough and pessimism has reached a peak. In our view, NRGY units represent a compelling risk/reward tradeoff at current levels.
Investment Thesis: Until recently, NRGY successfully grew via roll up acquisitions of retail propane distributors and organically growing its Northeast midstream business. However, the company stumbled following dilutive acquisitions of its general partner (GP) and the acquisition of Tres Palacios storage. These transactions were completed coincident with overall softness in retail propane distribution and natural gas storage. Consequently, NRGY needs to cut its distribution to a lower, more sustainable level. Despite this overhang, we believe NRGY is on the path to recovery. In our view, NRGY units represent deep value, which will become apparent once the company resets the distribution and restores investor confidence.
Valuation: We derive our target price of $19 for NRGY through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 10.0%, first stage five year distribution CAGR of 3.9%, based on our model forecasts, distribution CAGR of 3.0% over the following five years, and a terminal growth rate of 1.5%. Our $19 target price implies a yield of 7.4% in F1Q13 (12 months out) based on a forecast annualized distribution of $1.40 per unit.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Valuation: We derive our target price of $19 for NRGY through a three-stage distribution discount model ( DDM ). Investment Thesis: Until recently, NRGY successfully grew via roll up acquisitions of retail propane distributors and organically growing its Northeast midstream business. In our view, NRGY units represent deep value, which will become apparent once the company resets the distribution and restores investor confidence.
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Valuation: We derive our target price of $19 for NRGY through a three-stage distribution discount model ( DDM ). Looking Past the Distribution Cut; INITIATING Coverage with an OUTPERFORM Rating and Target Price of $19. Initiating at Outperform: We are initiating coverage of NRGY with an Outperform rating and target price of $19.
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Valuation: We derive our target price of $19 for NRGY through a three-stage distribution discount model ( DDM ). Initiating at Outperform: We are initiating coverage of NRGY with an Outperform rating and target price of $19. In our view, NRGY units represent deep value, which will become apparent once the company resets the distribution and restores investor confidence.
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Valuation: We derive our target price of $19 for NRGY through a three-stage distribution discount model ( DDM ). Looking Past the Distribution Cut; INITIATING Coverage with an OUTPERFORM Rating and Target Price of $19. In our view, NRGY units represent a compelling risk/reward tradeoff at current levels.
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83be500d-09e6-4d64-b799-e8f2ab668e5a
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717920.0
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2012-03-01 00:00:00 UTC
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Analyst Actions: El Paso Pipeline Partners Ests, Target Price Cut At Credit Suisse
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DDM
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https://www.nasdaq.com/articles/analyst-actions-el-paso-pipeline-partners-ests-target-price-cut-credit-suisse-2012-03-01
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nan
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nan
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4Q Miss; Higher Opex and Recontracting Weigh; Reiterate OP - Getting Paid to Wait; Lowering Estimates & TP to $39 (from $41).
4Q11 Results Below Expectations: EPB reported 4Q11 adjusted EBITDA of $239mm and DCF of $139mm, below our estimates of $261mm and $165mm, respectively. Results were primarily impacted by higher operating expenses, contract expirations and increased competition within the Rockies. EPB's distribution of $0.50/unit was in-line with our forecast.
Higher Opex and Recontracting Challenge: EPB noted that operating expenses increased due to pipeline integrity expenses which are expected to be completed by the end of 2012. That said, the company stated that opex is likely to remain elevated beyond 2012. Furthermore, EPB is likely to continue to face recontracting risk (primarily in the Rockies) owing to increased competition and production declines in the area, in our view.
Getting Paid to Wait (for Dropdowns): Despite near-term headwinds, we continue to believe EPB offers investors a compelling total return potential given a current yield of 5.7% and a forecast 3-year distribution CAGR of 9.0%. We acknowledge long-term growth visibility is somewhat clouded by the pending acquisition of El Paso Corp ( EP ) by Kinder Morgan Inc. ( KMI ), however we continue to believe KMI will drop down assets to EPB once the acquisition is complete. In our view, EPB unit holders are getting paid to wait.
Reiterate OP; Reducing Target Price to $39 (from $41): We derive our target price through a three-stage distribution discount model ( DDM ). Our assumptions include a discount rate of 8.5%, distribution CAGR of 7.2% over the first five years and 3.0% over the following five years and a terminal growth rate of 1.5%.
Estimate Revisions: We are lowering our 2012/2013/2014 EPU estimates to $2.11/$2.19/$2.16 (from $2.26/$2.38/$2.29).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Reiterate OP; Reducing Target Price to $39 (from $41): We derive our target price through a three-stage distribution discount model ( DDM ). 4Q Miss; Higher Opex and Recontracting Weigh; Reiterate OP - Getting Paid to Wait; Lowering Estimates & TP to $39 (from $41). Furthermore, EPB is likely to continue to face recontracting risk (primarily in the Rockies) owing to increased competition and production declines in the area, in our view.
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Reiterate OP; Reducing Target Price to $39 (from $41): We derive our target price through a three-stage distribution discount model ( DDM ). 4Q Miss; Higher Opex and Recontracting Weigh; Reiterate OP - Getting Paid to Wait; Lowering Estimates & TP to $39 (from $41). Results were primarily impacted by higher operating expenses, contract expirations and increased competition within the Rockies.
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Reiterate OP; Reducing Target Price to $39 (from $41): We derive our target price through a three-stage distribution discount model ( DDM ). Higher Opex and Recontracting Challenge: EPB noted that operating expenses increased due to pipeline integrity expenses which are expected to be completed by the end of 2012. Furthermore, EPB is likely to continue to face recontracting risk (primarily in the Rockies) owing to increased competition and production declines in the area, in our view.
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Reiterate OP; Reducing Target Price to $39 (from $41): We derive our target price through a three-stage distribution discount model ( DDM ). 4Q Miss; Higher Opex and Recontracting Weigh; Reiterate OP - Getting Paid to Wait; Lowering Estimates & TP to $39 (from $41). Results were primarily impacted by higher operating expenses, contract expirations and increased competition within the Rockies.
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71937aca-ddc0-4a55-8abe-558604ab4ba3
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717921.0
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2010-05-01 00:00:00 UTC
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Spice Up Your Portfolio With Leveraged ETFs
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DDM
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https://www.nasdaq.com/articles/spice-your-portfolio-leveraged-etfs-2010-05-01
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nan
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nan
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Leverage is a risky strategy you can use to amp up your returns. If you have the stomach and resources to invest with leverage, then you may want to look at leveraged exchange traded funds (ETFs), which offer the benefits of leverage without having to actually leverage your money.
Leveraged ETFs basically come in two flavors: 2x and 3x. As the names imply, these funds will typically earn or lose you a multiple of the index it is tracking. For example, f you invested in Direxion Financial Bear 3X ETF (NYSEArca: FAZ ) , you would earn 30% on a 10% rise in the corresponding index or lose 30% on a 10% decline, says Jeff Reeves of Investor Place .
Three key things to remember are:
Returns are only meant to reflect the daily performance of a fund's underlying index. Each day, these ETFs "reset" and over time, this can lead to a fund not staying in perfect line with its benchmark.
In normal markets, this effect can work in your favor. In volatile markets, the compounding effect is exacerbated and the longer you hold a fund, the further it may stray from its benchmark.
These funds are meant for daily use; if you hold them longer, just be aware that there may not be a 1-to-1 tracking of the underlying benchmark.
Here are some popular leveraged ETFs:
Direxion
Direxion Financial Bull 3X ETF (NYSEArca: FAS )
Direxion Small Cap Bear 3X ETF (NYSEArca: TZA )
Direxion Small Cap Bull 3X ETF (NYSEArca: TNA )
Direxion Large Cap Bull 3X ETF (NYSEArca: BGU )
Direxion Large Cap Bear 3X ETF (NYSEArca: BGZ )
ProShares funds don't use the 2x/3x notation. Rather, they have Ultra funds that are leveraged 2x and UltraPro funds that are leveraged 3x.
ProShares UltraPro Dow30 (NYSEArca: UDOW )
ProShares Ultra Financials (NYSEArca: UYG )
ProShares Ultra Consumer Goods (NYSEArca: UGE )
ProShares Ultra Technology (NYSEArca: ROM )
ProShares UltraPro Short Dow30 (NYSEArca: SDOW )
ProShares UltraShort Oil & Gas (NYSEArca: DUG )
ProShares Ultra Health Care (NYSEArca: RXL )
ProShares Ultra Dow30 (NYSEArca: DDM )
Rydex|SGI:
Rydex 2x S&P 500 ETF (NYSEArca: RSU )
Rydex Inverse 2x S&P 500 (NYSEArca: RSW )
Read the disclosure ; Tom Lydon is a board member of Rydex|SGI.
Sumin Kim contributed to this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ProShares UltraPro Dow30 (NYSEArca: UDOW ) ProShares Ultra Financials (NYSEArca: UYG ) ProShares Ultra Consumer Goods (NYSEArca: UGE ) ProShares Ultra Technology (NYSEArca: ROM ) ProShares UltraPro Short Dow30 (NYSEArca: SDOW ) ProShares UltraShort Oil & Gas (NYSEArca: DUG ) ProShares Ultra Health Care (NYSEArca: RXL ) ProShares Ultra Dow30 (NYSEArca: DDM ) Rydex|SGI: Rydex 2x S&P 500 ETF (NYSEArca: RSU ) Rydex Inverse 2x S&P 500 (NYSEArca: RSW ) Read the disclosure ; Tom Lydon is a board member of Rydex|SGI. For example, f you invested in Direxion Financial Bear 3X ETF (NYSEArca: FAZ ) , you would earn 30% on a 10% rise in the corresponding index or lose 30% on a 10% decline, says Jeff Reeves of Investor Place . Three key things to remember are: Returns are only meant to reflect the daily performance of a fund's underlying index.
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ProShares UltraPro Dow30 (NYSEArca: UDOW ) ProShares Ultra Financials (NYSEArca: UYG ) ProShares Ultra Consumer Goods (NYSEArca: UGE ) ProShares Ultra Technology (NYSEArca: ROM ) ProShares UltraPro Short Dow30 (NYSEArca: SDOW ) ProShares UltraShort Oil & Gas (NYSEArca: DUG ) ProShares Ultra Health Care (NYSEArca: RXL ) ProShares Ultra Dow30 (NYSEArca: DDM ) Rydex|SGI: Rydex 2x S&P 500 ETF (NYSEArca: RSU ) Rydex Inverse 2x S&P 500 (NYSEArca: RSW ) Read the disclosure ; Tom Lydon is a board member of Rydex|SGI. For example, f you invested in Direxion Financial Bear 3X ETF (NYSEArca: FAZ ) , you would earn 30% on a 10% rise in the corresponding index or lose 30% on a 10% decline, says Jeff Reeves of Investor Place . Here are some popular leveraged ETFs: Direxion Direxion Financial Bull 3X ETF (NYSEArca: FAS ) Direxion Small Cap Bear 3X ETF (NYSEArca: TZA ) Direxion Small Cap Bull 3X ETF (NYSEArca: TNA ) Direxion Large Cap Bull 3X ETF (NYSEArca: BGU ) Direxion Large Cap Bear 3X ETF (NYSEArca: BGZ ) ProShares funds don't use the 2x/3x notation.
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ProShares UltraPro Dow30 (NYSEArca: UDOW ) ProShares Ultra Financials (NYSEArca: UYG ) ProShares Ultra Consumer Goods (NYSEArca: UGE ) ProShares Ultra Technology (NYSEArca: ROM ) ProShares UltraPro Short Dow30 (NYSEArca: SDOW ) ProShares UltraShort Oil & Gas (NYSEArca: DUG ) ProShares Ultra Health Care (NYSEArca: RXL ) ProShares Ultra Dow30 (NYSEArca: DDM ) Rydex|SGI: Rydex 2x S&P 500 ETF (NYSEArca: RSU ) Rydex Inverse 2x S&P 500 (NYSEArca: RSW ) Read the disclosure ; Tom Lydon is a board member of Rydex|SGI. If you have the stomach and resources to invest with leverage, then you may want to look at leveraged exchange traded funds (ETFs), which offer the benefits of leverage without having to actually leverage your money. Here are some popular leveraged ETFs: Direxion Direxion Financial Bull 3X ETF (NYSEArca: FAS ) Direxion Small Cap Bear 3X ETF (NYSEArca: TZA ) Direxion Small Cap Bull 3X ETF (NYSEArca: TNA ) Direxion Large Cap Bull 3X ETF (NYSEArca: BGU ) Direxion Large Cap Bear 3X ETF (NYSEArca: BGZ ) ProShares funds don't use the 2x/3x notation.
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ProShares UltraPro Dow30 (NYSEArca: UDOW ) ProShares Ultra Financials (NYSEArca: UYG ) ProShares Ultra Consumer Goods (NYSEArca: UGE ) ProShares Ultra Technology (NYSEArca: ROM ) ProShares UltraPro Short Dow30 (NYSEArca: SDOW ) ProShares UltraShort Oil & Gas (NYSEArca: DUG ) ProShares Ultra Health Care (NYSEArca: RXL ) ProShares Ultra Dow30 (NYSEArca: DDM ) Rydex|SGI: Rydex 2x S&P 500 ETF (NYSEArca: RSU ) Rydex Inverse 2x S&P 500 (NYSEArca: RSW ) Read the disclosure ; Tom Lydon is a board member of Rydex|SGI. For example, f you invested in Direxion Financial Bear 3X ETF (NYSEArca: FAZ ) , you would earn 30% on a 10% rise in the corresponding index or lose 30% on a 10% decline, says Jeff Reeves of Investor Place . These funds are meant for daily use; if you hold them longer, just be aware that there may not be a 1-to-1 tracking of the underlying benchmark.
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80cb8e6b-8ffd-4764-8559-ddf3e20a1325
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717922.0
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2010-02-08 00:00:00 UTC
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Largecap Stocks and Covered Calls Are Key to 2010 Outperformance - Fund Manager Tyler Vernon
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DDM
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https://www.nasdaq.com/articles/largecap-stocks-and-covered-calls-are-key-2010-outperformance-fund-manager-tyler-vernon
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nan
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nan
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Tyler Vernon submits:
Tyler Vernon is a Principal and Portfolio Manager at Princeton, NJ based Biltmore Capital Advisors .
We had the opportunity to ask Tyler how he's allocating among different asset classes in this environment, and what his overall strategy is for outperformance in 2010.
• • •
Seeking Alpha (( SA )): In your portfolio currently, how are you allocating among different asset classes?
Tyler Vernon (( TV )): We believe diversification is the key to protecting assets and compounding returns over the long term. While correlation of asset classes was dramatically high in 2008 and 2009, we believe 2010 will be much different. As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months.
While we think the stock market is properly valued as a whole, there are still undervalued areas of the market where returns can me made. In particular, the riskier, smaller companies with higher P/E's and lower dividends outperformed last year, keeping the larger, higher dividend yielding companies at fairly attractive current prices. We believe that individuals should focus on these larger multinational companies as they will capitalize on deriving a large majority of their revenue from the faster recovering economies.
Additionally, we believe that the "risk trade" will end over the next 12 months as investors grow more concerned about a tightening Federal Reserve and that investors will flock to safety at that point.
Our strategy focuses on not only diversifying by size, style, and sector, but also on employing covered call strategies on approximately 50-60 percent of our long equity positions. Coming off a 55 percent increase from market lows, we feel that the economy needs to show signs of improvement and corporate profits will need to see top line revenue growth before this market regains momentum. As such, we feel that the market will trade in a range for a considerable period of time and covered call strategies will outperform.
For income oriented investors, if we can target large companies issuing 3 percent dividend yields, and collect a 10 percent annualized yield from call writing, we are accomplishing their income goals without taking interest rate risk inherent in the current bond market. Even for total return investors, if we can collect a 9-12 percent dividend and income stream in flat markets using these strategies, we believe people will be better off over the long haul than owning the S&P outright.
When viewing market investments, we believe risk management is more important than ever and that professionals and individual investors alike don't accurately understand the risk inherent in portfolios. Biltmore Capital believes it's important to purchase out-of-the-money protective puts on at least 50 percent of the equity portfolio in attempt to protect against another black swan event. While there is obviously an expense to purchase these out-of-the-money puts, only a small portion of the covered call premium is used to buy this protection.
We also practice risk management by employing a 15 percent allocation to structured notes. These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities. Our investment committee will customize these investments according to long term themes we see materializing in the economy. Generally, the investor gives up some upside in their returns in exchange for the principal protection inherent in these investments.
We believe that 20 percent should continue to be in alternative investments. Within this space, 30 percent should be allocated to managed futures and the rest to macro and event driven hedge fund strategies. We believe that managed futures should be able to capitalize on any shock to the economy such as inflation, dollar crisis, or market turmoil and perform the way they did in 2008.
Additionally, we believe that low to non-correlated alternative investment strategies are key to diversification within a portfolio. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside. After the robust run up in the equity markets over the past 11 months, we feel that a focus on alternative investments is more important than ever.
Fixed income is always a vital part of any portfolio but we feel it's prudent to be underweight that asset class after historical inflows. Additionally, we at Biltmore Capital have been shortening duration on our fixed income portfolios to mitigate interest rate risk. We believe a 30 percent allocation to this asset group is still warranted.
SA: Which single asset class do you think will perform best in 2010? What stocks or ETF would you choose to capture that?
TV: We believe a combination of covered call strategies and managed futures should perform well in 2010. Since they historically aren't correlated to each other, overweightings in these areas make sense.
At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify. For the average investor, there are such ETFs as the Madison/Claymore Covered Call & Equity Strategy Fund ( MCN ) that employ covered call strategies. It is important to note though that an ETF like MCN does not trade at NAV like a customized portfolio of stocks and options, so volatility can be much greater than owning the underlying positions. For this reason, we prefer customized covered call portfolios for our clients, but other options do exist.
SA: What instruments do you generally use to capture particular asset classes?
TV: We are fortunate to be able to work with individuals with established wealth of between $3-$40 million in investable assets. Because of this, we can produce customized portfolios for individuals using in house and outside institutional managers and don't need to purchase tax unfriendly and high fee mutual funds. We can seek out institutional quality managers to manage separate pieces of client portfolios, ones who have proven track records of success in the strategy.
The alternative investments are generally the toughest to access, with lower minimums and fee structure. Having said this, funds have popped up over the past 5 years that give qualified investors access to managed futures at minimums as low at $10,000 as well as access to reputable hedge funds.
SA:Have any new instruments emerged in the past few years that you've adopted in your portfolio construction?
TV: There have been two major developments in the past few years that have made it easier for individuals to enter sectors of the markets as well as alternative investments.
First, funds have opened up all over with lower minimums to quality alternative investment managers such as managed futures and hedge funds. Qualified investors can access these funds for as little as $10,000 where in the past one would need a minimum investment of a million dollars. This has been a major win for individual investors as these asset classes have the ability to perform very well when markets fall, thus providing a vital element of risk management.
Second, ETFs have been the other major development over the last couple of years. We have made strategic allocations to these investments to capitalize on specific views of our investment committee. We at Biltmore have made allocations to ETFs such as GLD, TBT and others, enabling us to capitalize on leveraged directional views of bond prices and metals.
Seeking Alpha: Thank you very much for sharing your current process, Tyler .
TV: Happy to participate.
If you are a fund manager and interested in doing an interview with us on your highest conviction stock holding, please email Rebecca Barnett: rbarnett@seekingalpha.com
See also America's So-Called Recovery on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months. Even for total return investors, if we can collect a 9-12 percent dividend and income stream in flat markets using these strategies, we believe people will be better off over the long haul than owning the S&P outright. These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities.
|
These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside. At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify.
|
As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months. When viewing market investments, we believe risk management is more important than ever and that professionals and individual investors alike don't accurately understand the risk inherent in portfolios. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside.
|
TV: We believe a combination of covered call strategies and managed futures should perform well in 2010. At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify. TV: There have been two major developments in the past few years that have made it easier for individuals to enter sectors of the markets as well as alternative investments.
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99a7bf6d-2665-4acb-8696-d231b58476ed
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717923.0
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2010-02-08 00:00:00 UTC
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Large-Cap Stocks and Covered Calls Are Key to 2010 Outperformance - Fund Manager Tyler Vernon
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DDM
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https://www.nasdaq.com/articles/large-cap-stocks-and-covered-calls-are-key-2010-outperformance-fund-manager-tyler-vernon
|
nan
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nan
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Tyler Vernon submits:
Tyler Vernon is a Principal and Portfolio Manager at Princeton, NJ based Biltmore Capital Advisors .
We had the opportunity to ask Tyler how he's allocating among different asset classes in this environment, and what his overall strategy is for outperformance in 2010.
• • •
Seeking Alpha (( SA )): In your portfolio currently, how are you allocating among different asset classes?
Tyler Vernon (( TV )): We believe diversification is the key to protecting assets and compounding returns over the long term. While correlation of asset classes was dramatically high in 2008 and 2009, we believe 2010 will be much different. As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months.
While we think the stock market is properly valued as a whole, there are still undervalued areas of the market where returns can be made. In particular, the riskier, smaller companies with higher P/Es and lower dividends outperformed last year, keeping the larger, higher dividend yielding companies at fairly attractive current prices. We believe that individuals should focus on these larger multinational companies as they will capitalize on deriving a large majority of their revenue from the faster recovering economies.
Additionally, we believe that the "risk trade" will end over the next 12 months as investors grow more concerned about a tightening Federal Reserve and that investors will flock to safety at that point.
Our strategy focuses on not only diversifying by size, style, and sector, but also on employing covered call strategies on approximately 50-60 percent of our long equity positions. Coming off a 55 percent increase from market lows, we feel that the economy needs to show signs of improvement and corporate profits will need to see top line revenue growth before this market regains momentum. As such, we feel that the market will trade in a range for a considerable period of time and covered call strategies will outperform.
For income oriented investors, if we can target large companies issuing 3 percent dividend yields, and collect a 10 percent annualized yield from call writing, we are accomplishing their income goals without taking interest rate risk inherent in the current bond market. Even for total return investors, if we can collect a 9-12 percent dividend and income stream in flat markets using these strategies, we believe people will be better off over the long haul than owning the S&P outright.
When viewing market investments, we believe risk management is more important than ever and that professionals and individual investors alike don't accurately understand the risk inherent in portfolios. Biltmore Capital believes it's important to purchase out-of-the-money protective puts on at least 50 percent of the equity portfolio in attempt to protect against another black swan event. While there is obviously an expense to purchase these out-of-the-money puts, only a small portion of the covered call premium is used to buy this protection.
We also practice risk management by employing a 15 percent allocation to structured notes. These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities. Our investment committee will customize these investments according to long term themes we see materializing in the economy. Generally, the investor gives up some upside in their returns in exchange for the principal protection inherent in these investments.
We believe that 20 percent should continue to be in alternative investments. Within this space, 30 percent should be allocated to managed futures and the rest to macro and event driven hedge fund strategies. We believe that managed futures should be able to capitalize on any shock to the economy such as inflation, dollar crisis, or market turmoil and perform the way they did in 2008.
Additionally, we believe that low to non-correlated alternative investment strategies are key to diversification within a portfolio. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside. After the robust run up in the equity markets over the past 11 months, we feel that a focus on alternative investments is more important than ever.
Fixed income is always a vital part of any portfolio but we feel it's prudent to be underweight that asset class after historical inflows. Additionally, we at Biltmore Capital have been shortening duration on our fixed income portfolios to mitigate interest rate risk. We believe a 30 percent allocation to this asset group is still warranted.
SA: Which single asset class do you think will perform best in 2010? What stocks or ETF would you choose to capture that?
TV: We believe a combination of covered call strategies and managed futures should perform well in 2010. Since they historically aren't correlated to each other, overweightings in these areas make sense.
At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify. For the average investor, there are such ETFs as the Madison/Claymore Covered Call & Equity Strategy Fund ( MCN ) that employ covered call strategies. It is important to note though that an ETF like MCN does not trade at NAV like a customized portfolio of stocks and options, so volatility can be much greater than owning the underlying positions. For this reason, we prefer customized covered call portfolios for our clients, but other options do exist.
SA: What instruments do you generally use to capture particular asset classes?
TV: We are fortunate to be able to work with individuals with established wealth of between $3-$40 million in investable assets. Because of this, we can produce customized portfolios for individuals using in house and outside institutional managers and don't need to purchase tax unfriendly and high fee mutual funds. We can seek out institutional quality managers to manage separate pieces of client portfolios, ones who have proven track records of success in the strategy.
The alternative investments are generally the toughest to access, with lower minimums and fee structure. Having said this, funds have popped up over the past 5 years that give qualified investors access to managed futures at minimums as low at $10,000 as well as access to reputable hedge funds.
SA:Have any new instruments emerged in the past few years that you've adopted in your portfolio construction?
TV: There have been two major developments in the past few years that have made it easier for individuals to enter sectors of the markets as well as alternative investments.
First, funds have opened up all over with lower minimums to quality alternative investment managers such as managed futures and hedge funds. Qualified investors can access these funds for as little as $10,000 where in the past one would need a minimum investment of a million dollars. This has been a major win for individual investors as these asset classes have the ability to perform very well when markets fall, thus providing a vital element of risk management.
Second, ETFs have been the other major development over the last couple of years. We have made strategic allocations to these investments to capitalize on specific views of our investment committee. We at Biltmore have made allocations to ETFs such as GLD, TBT and others, enabling us to capitalize on leveraged directional views of bond prices and metals.
Seeking Alpha: Thank you very much for sharing your current process, Tyler .
TV: Happy to participate.
If you are a fund manager and interested in doing an interview with us on your highest conviction stock holding, please email Rebecca Barnett: rbarnett@seekingalpha.com
See also Retail Sales Rise But Don't Get Excited Yet on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months. Even for total return investors, if we can collect a 9-12 percent dividend and income stream in flat markets using these strategies, we believe people will be better off over the long haul than owning the S&P outright. These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities.
|
These investments, generally principal protected by an underlying bond or CD, give our clients the ability to profit by making directional views of currency, domestic and international markets, metals, and other commodities. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside. At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify.
|
As such, to determine over and underweightings of portfolios, the investment committee of Biltmore Capital Advisors takes a macro view of the economy and looks at valuations of various asset classes relative to economic realities that we see over the next 12-24 months. When viewing market investments, we believe risk management is more important than ever and that professionals and individual investors alike don't accurately understand the risk inherent in portfolios. Having the ability to go long, or short almost any asset class including currency, energy, metals, commodities, international and domestic equity markets as well as bond markets gives this strategy flexibility to capitalize on any trend that develops while properly hedging downside.
|
TV: We believe a combination of covered call strategies and managed futures should perform well in 2010. At Biltmore, we customize our own covered call portfolios for clients as they generally have larger asset bases giving us proper capital to diversify. TV: There have been two major developments in the past few years that have made it easier for individuals to enter sectors of the markets as well as alternative investments.
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dc10df77-54ee-4be9-873f-1b369b88cc9b
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717924.0
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2009-10-05 00:00:00 UTC
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Why Dow 10,000 Will Remain Untouched For Years
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DDM
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https://www.nasdaq.com/articles/why-dow-10000-will-remain-untouched-years-2009-10-05
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nan
|
nan
|
On March 9th, the Wall Street Journal ran an article titled 'Dow 5,000? There's A Case For It.' The Dow (DJI: ^DJI) bottomed that very day at 6,440, along with the S&P 500 (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC), and went on to rally for seven consecutive months.
Fast forward to September 17th, when the Wall Street Journal ran an article titled 'The Dow Will Hit 10,000 Soon. So What?' It's too soon to say with certainty that the market has topped, but we can already see that the Dow has dropped several hundred points since then and has yet to ring the 10,000 bell.
Admittedly, using the Wall Street Journal's prowess (or lack thereof) in forecasting market trends is not the most academically correct gauge. Nevertheless, it illustrates how the financial media tends to jump on a trend wholeheartedly just before it reverses (more about that in a moment). Needless to say, this causes much anguish, irritation, and losses for investors.
Unlike the Wall Street Journal and Wall Street in general - which was stuck in a self-pity party around the March lows - the ETF Profit Strategy Newsletter went against the grain and sent out a Trend Change Alert on March 2nd.
The arrival of this alert in subscriber's e-mail boxes was no surprise, as the newsletter had already predicted a bottom below Dow 6,700 earlier in 2009. The Trend Change Alert predicted a persistent and powerful multi-month rally that would push the Dow Jones (NYSEArca: DIA) into the 9,000 - 10,000 range.
ETFs recommended included plain vanilla ETFs like the S&P 500 SPDRs (NYSEArca: SPY), Nasdaq (Nasdaq: QQQQ) and Vanguard Total Stock Market ETF (NYSEArca: VTI). Sector ETFs like the Financial Select Sector SPDRs (NYSEArca: XLF), Vanguard Materials (NYSEArca: VAW) and iShares DJ U.S. Consumer Services (NYSEArca: IYC), along with leveraged ETFs such as the Ultra Dow Jones ProShares (NYSEArca: DDM) and Ultra Nasdaq ProShares (NYSEArca: QLD) were also included.
Trend-chasers - the blind leading the blind
We've seen in 2007 and 2009 that blindly following the so-called expert advice coming from Wall Street and the media, enticed investors to buy towards a market top and sell towards a market bottom.
To create a blind leading the blind scenario, two components have to be in place. You need a 'blind' entity or group of people willing to lead, and another willing to follow. We all know the end result of the blind leading the blind - they both fall into a pit - so why would anyone follow a blind leader? In short, it's all about perception. Perceived leadership qualities and a subsequent vortex of peer pressure often persuade even the smartest of individuals to follow a blind leader.
Before we discuss the applicability of this phenomenon for the average Joe, let's take a moment to illustrate the basic concept of blind faith. Imagine you are rich. Imagine all your friends are rich. Imagine your friends tell you about an investment guru who will double your money every five years without any risk.
Obviously you are suspicious and want to ask questions. This suspicion, however, makes you appear unintelligent towards your friends because they've been doubling their money for years. In fact, they've done you a favor by introducing you to their guru who accepts clients by invitation only.
You've been given a once in a life-time opportunity and would be a moron if you turned it down. Peer pressure outweighs your gut, it-sounds-to-good-to-be-true', feeling; you are now ready to start doubling your money without risk, too. Can't happen you say. It did happen; ask all the sophisticated investors who lost millions with Bernie Madoff.
The obvious, yet effective, bait-and switch
The money-losing cycle for the average Joe investor and even educated money managers, starts with the financial media. As the Wall Street Journal headline (Dow 5,000? There's A Case For It) shows, the media was expecting even lower prices following the March lows.
As stocks rallied, the mood of the media lightened up as well. The surge in optimism from the March lows to the September highs happened in baby steps. Initially, in March and April there were signs that the government stimulus might be working.
This was followed by rare green shoots. A bit later, fertilized by rising stock prices, green shoots were popping up all over the place. Even higher stock prices brought about the notion of a jobless recovery. Wall Street now believes that the green shoots have matured into full blown plants. The recovery is here to stay, they say.
All the yo-yos, who never saw the 2007 meltdown coming and thought things would get even worse in March, are saying that the bear market is over and the V-shaped recovery is well under way. Where were they when we needed them?
Buy stocks at your own peril
The chart below shows how the percentage of bullish advisors hit rock-bottom during the March lows and inclined - along with rising prices - ever since. Bullishness tends to piggy back on rising stocks, until extreme bullishness, all of a sudden, becomes a contrarian indicator.
The ETF Profti Strategy Newsletter had warned of the elevated levels of optimism seen earlier in January and recommended to buy short ETFs, such as the UltraShort Financial ProShares (NYSEArca: SKF) and UltraShort S&P 500 ProShares (NYSEArca: SDS). Following the secondary January highs, stock prices plummeted 30% in 90 days.
Ironically as it may seem, extreme levels of bullishness becomes like a noose around the neck of the very bulls supporting that trend.
The psychology of market down-trends
Extreme levels of optimism reflect the morphosis from wanna-be stock buyers to owners. When owners outweigh potential buyers, the pipeline of new buyers dries up to a point where there's not enough buying volume to drive up prices any further. This is compounded by the fact that owners are reduced to either holding or selling, neither of which can propel prices.
As the base of stock owners has become un-proportionately high, an impending down-trend is inevitable. Profit taking will get the stone rolling. As prices start to decline, more stops will be triggered and selling will become the new trend. The unusual high level of stock ownership provides a consistent flow of stocks being put up for sale, resulting in rapidly declining prices.
In August and September, the Investors Intelligence survey of investment advisors, registered the highest levels of optimism seen since the 2007 all-time market high. Such levels are almost always indicative of lower prices to come. The scope of optimism suggests that significantly lower prices are looming on the horizon.
This interpretation of investor sentiment is confirmed by valuation metrics with a track record of historic accuracy.
Overvalued is an understatement
There are different ways to determine the stock markets real value. P/E ratios and dividend yields are the most commonly used valuation metrics.
The chart above reveals two key factors:
1) Based on P/E ratios, the stock market is grossly overvalued, even at current prices. As per Standard & Poor's research, the preliminary Q2 2009 P/E ratio is 140.76 (99% of companies have already reported).
Historically, a P/E ratio north of 20 is viewed as expensive. Historically, there is almost a 70% chance of correction after P/E levels spike above 25 - 30. Imagine the impact of a 140 P/E ratio.
2) The chart clearly shows that the stock market does not bottom unless P/E ratios completely reset (indicated by the red line). This was true in the 40s, 50s, 70s and 80s. In 2002 valuations were not reset. As we now know, the 2002 lows did not last. Earlier this year, valuations were not reset either. The implications are clear.
Just as ice does not thaw unless temperatures rise above 32 degrees, the stock market does not bottom unless P/E ratios (and dividend yields) fall below the reset levels, which in turn triggers a sustainable rally.
Based on the extreme sentiment readings, it is unlikely that the Dow Jones will grind beyond 10,000 in the near-term. Based on long-term valuation metrics, there is no reason to expect Dow 10,000 or anything even close to that level, over the long-run.
How low do stocks have to drop before a real bottom and fair valuations can be found? The ETF Profit Strategy Newsletter contains a detailed analysis of P/E ratios, dividend yields, investor sentiment and the Dow measured in the only true currency - gold - along with a target level for the ultimate market bottom and weekly guidance through the stock market's long journey ahead.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Sector ETFs like the Financial Select Sector SPDRs (NYSEArca: XLF), Vanguard Materials (NYSEArca: VAW) and iShares DJ U.S. Consumer Services (NYSEArca: IYC), along with leveraged ETFs such as the Ultra Dow Jones ProShares (NYSEArca: DDM) and Ultra Nasdaq ProShares (NYSEArca: QLD) were also included. The obvious, yet effective, bait-and switch The money-losing cycle for the average Joe investor and even educated money managers, starts with the financial media. Buy stocks at your own peril The chart below shows how the percentage of bullish advisors hit rock-bottom during the March lows and inclined - along with rising prices - ever since.
|
Sector ETFs like the Financial Select Sector SPDRs (NYSEArca: XLF), Vanguard Materials (NYSEArca: VAW) and iShares DJ U.S. Consumer Services (NYSEArca: IYC), along with leveraged ETFs such as the Ultra Dow Jones ProShares (NYSEArca: DDM) and Ultra Nasdaq ProShares (NYSEArca: QLD) were also included. The ETF Profti Strategy Newsletter had warned of the elevated levels of optimism seen earlier in January and recommended to buy short ETFs, such as the UltraShort Financial ProShares (NYSEArca: SKF) and UltraShort S&P 500 ProShares (NYSEArca: SDS). Just as ice does not thaw unless temperatures rise above 32 degrees, the stock market does not bottom unless P/E ratios (and dividend yields) fall below the reset levels, which in turn triggers a sustainable rally.
|
Sector ETFs like the Financial Select Sector SPDRs (NYSEArca: XLF), Vanguard Materials (NYSEArca: VAW) and iShares DJ U.S. Consumer Services (NYSEArca: IYC), along with leveraged ETFs such as the Ultra Dow Jones ProShares (NYSEArca: DDM) and Ultra Nasdaq ProShares (NYSEArca: QLD) were also included. Unlike the Wall Street Journal and Wall Street in general - which was stuck in a self-pity party around the March lows - the ETF Profit Strategy Newsletter went against the grain and sent out a Trend Change Alert on March 2nd. Trend-chasers - the blind leading the blind We've seen in 2007 and 2009 that blindly following the so-called expert advice coming from Wall Street and the media, enticed investors to buy towards a market top and sell towards a market bottom.
|
Sector ETFs like the Financial Select Sector SPDRs (NYSEArca: XLF), Vanguard Materials (NYSEArca: VAW) and iShares DJ U.S. Consumer Services (NYSEArca: IYC), along with leveraged ETFs such as the Ultra Dow Jones ProShares (NYSEArca: DDM) and Ultra Nasdaq ProShares (NYSEArca: QLD) were also included. Unlike the Wall Street Journal and Wall Street in general - which was stuck in a self-pity party around the March lows - the ETF Profit Strategy Newsletter went against the grain and sent out a Trend Change Alert on March 2nd. Trend-chasers - the blind leading the blind We've seen in 2007 and 2009 that blindly following the so-called expert advice coming from Wall Street and the media, enticed investors to buy towards a market top and sell towards a market bottom.
|
25ed6356-90fc-4e7e-a0a3-c30c2189e781
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717925.0
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2023-12-16 10:00:00 UTC
|
Is Adobe (ADBE) Outperforming Other Computer and Technology Stocks This Year?
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DDOG
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https://www.nasdaq.com/articles/is-adobe-adbe-outperforming-other-computer-and-technology-stocks-this-year-1
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Adobe Systems (ADBE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Adobe Systems is one of 623 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Adobe Systems is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ADBE's full-year earnings has moved 2.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ADBE has returned 73.7% so far this year. At the same time, Computer and Technology stocks have gained an average of 50%. This means that Adobe Systems is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is Datadog (DDOG). The stock is up 66.8% year-to-date.
The consensus estimate for Datadog's current year EPS has increased 6700% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Adobe Systems belongs to the Computer - Software industry, a group that includes 36 individual stocks and currently sits at #79 in the Zacks Industry Rank. This group has gained an average of 52.9% so far this year, so ADBE is performing better in this area.
In contrast, Datadog falls under the Internet - Software industry. Currently, this industry has 147 stocks and is ranked #26. Since the beginning of the year, the industry has moved +65.6%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Adobe Systems and Datadog as they could maintain their solid performance.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other Computer and Technology stock that has outperformed the sector so far this year is Datadog (DDOG). Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
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Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One other Computer and Technology stock that has outperformed the sector so far this year is Datadog (DDOG). Over the past 90 days, the Zacks Consensus Estimate for ADBE's full-year earnings has moved 2.3% higher.
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Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One other Computer and Technology stock that has outperformed the sector so far this year is Datadog (DDOG). The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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One other Computer and Technology stock that has outperformed the sector so far this year is Datadog (DDOG). Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Adobe Systems is one of 623 individual stocks in the Computer and Technology sector.
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d878e575-8c42-473b-a2cb-6719dd555a6a
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717926.0
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2023-12-16 10:00:00 UTC
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Datadog, Inc. (DDOG) Hit a 52 Week High, Can the Run Continue?
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DDOG
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https://www.nasdaq.com/articles/datadog-inc.-ddog-hit-a-52-week-high-can-the-run-continue
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nan
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nan
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Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. The stock hit a new 52-week high of $123.82 in the previous session. Datadog has gained 66.8% since the start of the year compared to the 50% move for the Zacks Computer and Technology sector and the 65.6% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2023, Datadog reported EPS of $0.45 versus consensus estimate of $0.34 while it beat the consensus revenue estimate by 4.63%.
For the current fiscal year, Datadog is expected to post earnings of $1.53 per share on $2.11 billion in revenues. This represents a 56.12% change in EPS on a 25.69% change in revenues. For the next fiscal year, the company is expected to earn $1.71 per share on $2.55 billion in revenues. This represents a year-over-year change of 11.86% and 21.32%, respectively.
Valuation Metrics
Datadog may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Datadog has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 80.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 40.2X. On a trailing cash flow basis, the stock currently trades at 1241.9X versus its peer group's average of 18.1X. Additionally, the stock has a PEG ratio of 2.81. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Datadog currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Datadog passes the test. Thus, it seems as though Datadog shares could have a bit more room to run in the near term.
How Does DDOG Stack Up to the Competition?
Shares of DDOG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BlackLine (BL). BL has a Zacks Rank of # 2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. BlackLine beat our consensus estimate by 41.67%, and for the current fiscal year, BL is expected to post earnings of $1.98 per share on revenue of $588.52 million.
Shares of BlackLine have gained 10.1% over the past month, and currently trade at a forward P/E of 34.4X and a P/CF of 366.87X.
The Internet - Software industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DDOG and BL, even beyond their own solid fundamental situation.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
BlackLine (BL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. How Does DDOG Stack Up to the Competition? Shares of DDOG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry?
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BlackLine (BL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. How Does DDOG Stack Up to the Competition?
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BlackLine (BL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. How Does DDOG Stack Up to the Competition?
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Shares of Datadog (DDOG) have been strong performers lately, with the stock up 11.9% over the past month. How Does DDOG Stack Up to the Competition? Shares of DDOG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry?
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8a1be156-6473-4dd0-a48e-5d054043428e
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717927.0
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2023-12-16 10:00:00 UTC
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MicroVision (MVIS) Reaffirms Revenue Guidance for This Year
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DDOG
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https://www.nasdaq.com/articles/microvision-mvis-reaffirms-revenue-guidance-for-this-year
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nan
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nan
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MicroVision MVIS recently reaffirmed its fiscal 2023 revenue expectations, aligning with the figures announced during the third-quarter 2023earnings call The company continues to expect full-year revenue to possibly be at the higher end of the previously guided range of $6.5-$8.0 million.
During the third quarter’searnings call MVIS disclosed its sales teams' engagement with multiple car and truck manufacturers to seek the ideal partner for implementing light detection and ranging (“LiDAR”)-based advanced safety systems in the company’s vehicles.
Their objective was to finalize this partnership in 2023, intending to start system production by 2027. However, in a recent statement, the company revealed a shift in the nomination timing to the first quarter of 2024.
Microvision, Inc. Price and Consensus
Microvision, Inc. price-consensus-chart | Microvision, Inc. Quote
Despite the shift in the timing of nominations, the company maintains confidence in its interactions with Original Equipment Manufacturers, observing substantial demand for sample orders prior to nominations. Detailed negotiations continue as they finalize the commercial terms for these significant partnerships, potentially impacting the market. The reaffirmation of the previously guided revenue expectations has not deterred MVIS’ focus on expanding revenues from non-automotive markets through direct sales.
In the third quarter’searnings call MicroVision announced that it is optimistic about generating profits on the realization of its Request for Quotes, adding to its non-recurring engineering revenues from OEMs for customizing sensors. The company expects another revenue stream created from selling LiDAR sensors as the demand increases in various places in Europe and Asia.
MVIS is also benefiting from its wide-ranging portfolio, including Laser Beam Scanning Technology, Projection and Display Solutions, recent ones including micro-display concepts for AR headsets, a 1440i MEMS module supporting AR headsets, an Interactive Display module for smart speakers and the MAVIN DR, a dynamic-range automotive lidar sensor.
MicroVision is also benefiting from acquisitions. In 2023, it acquired a part of Ibeo Automotive Systems GmbH, which holds automotive-grade qualifications. This acquisition positions the company with a significant advantage over its competitors in the market.
Zacks Rank and Stocks to Consider
MVIS currently carries a Zacks Rank #3 (Hold). Shares of the firm have climbed 14.5% year to date.
Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe's first-quarter 2024 earnings has been revised by 3 cents northward to $4.27 per share in the past seven days. For fiscal 2024, earnings estimates have moved upward by 19 cents to $18.05 per share in the past seven days.
ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. Shares of ADBE have gained 73.7% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings moved northward by 9 cents to 43 cents in the past 60 days. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.61%. Shares of DDOG have climbed 66.8% year to date.
The Zacks Consensus Estimate for Gitlab’s fourth-quarter fiscal 2024 earnings has been revised upward by 9 cents to 8 cents per share in the past 30 days. For fiscal 2024, earnings estimates have been raised by 20 cents to 13 cents per share in the past 30 days.
Gitlab’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 317.62%. Shares of GTLB have surged 37.2% year to date.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Microvision, Inc. (MVIS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
GitLab Inc. (GTLB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days. Shares of DDOG have climbed 66.8% year to date.
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Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Microvision, Inc. (MVIS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days.
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Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Microvision, Inc. (MVIS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days.
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Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days. Shares of DDOG have climbed 66.8% year to date.
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1dd68ccd-b75b-4a09-8d89-7da4f5094b8a
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717928.0
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2023-12-15 00:00:00 UTC
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DDOG Quantitative Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-quantitative-stock-analysis-7
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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ba48eff4-0746-4feb-84c7-fe758dcfb4c6
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717929.0
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2023-12-14 00:00:00 UTC
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Notable Friday Option Activity: EBIX, DDOG, RRX
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DDOG
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-ebix-ddog-rrx
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Ebix Inc (Symbol: EBIX), where a total of 14,336 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 77.9% of EBIX's average daily trading volume over the past month of 1.8 million shares. Especially high volume was seen for the $8 strike call option expiring December 22, 2023, with 2,779 contracts trading so far today, representing approximately 277,900 underlying shares of EBIX. Below is a chart showing EBIX's trailing twelve month trading history, with the $8 strike highlighted in orange:
Datadog Inc (Symbol: DDOG) options are showing a volume of 25,933 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 77.5% of DDOG's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $124 strike call option expiring December 15, 2023, with 1,293 contracts trading so far today, representing approximately 129,300 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $124 strike highlighted in orange:
And Regal Rexnord Corp (Symbol: RRX) saw options trading volume of 3,846 contracts, representing approximately 384,600 underlying shares or approximately 77% of RRX's average daily trading volume over the past month, of 499,710 shares. Especially high volume was seen for the $150 strike call option expiring February 16, 2024, with 1,501 contracts trading so far today, representing approximately 150,100 underlying shares of RRX. Below is a chart showing RRX's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for EBIX options, DDOG options, or RRX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Institutional Holders of MNP
Top Ten Hedge Funds Holding AMRK
FTRE Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $124 strike call option expiring December 15, 2023, with 1,293 contracts trading so far today, representing approximately 129,300 underlying shares of DDOG. Below is a chart showing EBIX's trailing twelve month trading history, with the $8 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 25,933 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 77.5% of DDOG's average daily trading volume over the past month, of 3.3 million shares.
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Below is a chart showing EBIX's trailing twelve month trading history, with the $8 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 25,933 contracts thus far today. Below is a chart showing DDOG's trailing twelve month trading history, with the $124 strike highlighted in orange: And Regal Rexnord Corp (Symbol: RRX) saw options trading volume of 3,846 contracts, representing approximately 384,600 underlying shares or approximately 77% of RRX's average daily trading volume over the past month, of 499,710 shares. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 77.5% of DDOG's average daily trading volume over the past month, of 3.3 million shares.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $124 strike highlighted in orange: And Regal Rexnord Corp (Symbol: RRX) saw options trading volume of 3,846 contracts, representing approximately 384,600 underlying shares or approximately 77% of RRX's average daily trading volume over the past month, of 499,710 shares. Below is a chart showing RRX's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for EBIX options, DDOG options, or RRX options, visit StockOptionsChannel.com. Below is a chart showing EBIX's trailing twelve month trading history, with the $8 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 25,933 contracts thus far today.
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Below is a chart showing DDOG's trailing twelve month trading history, with the $124 strike highlighted in orange: And Regal Rexnord Corp (Symbol: RRX) saw options trading volume of 3,846 contracts, representing approximately 384,600 underlying shares or approximately 77% of RRX's average daily trading volume over the past month, of 499,710 shares. Below is a chart showing RRX's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for EBIX options, DDOG options, or RRX options, visit StockOptionsChannel.com. Below is a chart showing EBIX's trailing twelve month trading history, with the $8 strike highlighted in orange: Datadog Inc (Symbol: DDOG) options are showing a volume of 25,933 contracts thus far today.
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89af0bd6-6772-4d0a-b159-7bafceb21dd6
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717930.0
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2023-12-14 00:00:00 UTC
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CACI International (CACI) Secures $64M U.S. Air Force Contract
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DDOG
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https://www.nasdaq.com/articles/caci-international-caci-secures-%2464m-u.s.-air-force-contract
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nan
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nan
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CACI International Inc. CACI clinched a significant deal — a five-year task order valued at up to $64 million. This contract is dedicated to providing comprehensive life cycle hardware and systems engineering support for the U.S. Air Force's Distributed Common Ground System (DCGS).
The awarded contract will specifically bolster the Air Force Life Cycle Management Center Command, Control, and Intelligence, Surveillance, and Reconnaissance (C2ISR) Division, operating under the Program Executive Office – Digital Directorate.
CACI will play a pivotal role by implementing a series of modifications and upgrades within the DCGS shelter operations, reinforcing the resilience of forward operating location ground stations. This enhancement aims at ensuring agile and effective quick reaction capabilities in diverse operational environments.
The contract entails CACI's responsibility for maintaining and sustaining various mobile and transportable systems across their life cycle for DCGS. Additionally, the company will develop and procure additional components and systems aligned with mission requirements. These initiatives aim to enhance secure and reliable command, control, communications, and intelligence functions, optimizing intelligence, surveillance, and reconnaissance (ISR) operations, and streamlining critical processing, exploitation and dissemination functions.
This strategic contract underscores CACI's commitment to fortifying the infrastructure supporting crucial Air Force operations. The integration of CACI's cutting-edge mobile technologies into the DCGS framework promises to revolutionize data delivery, ensuring prompt and effective decision-making for the nation's defense forces.
Shares of this Zacks Rank #3 (Hold) company have underperformed the Zacks Computer – Services industry in the year-to-date (YTD) period. CACI’s shares have risen 7.1% YTD compared with the industry’s 11.4% growth.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Continuous Flow of Contracts
CACI International has been benefiting from new business wins from the U.S. Air Force & Army, NASA, National Geospatial-Intelligence Agency (“NGA”) and DARPA. Earlier this week, the company secured a five-year task order from the U.S. Army that has a ceiling value of $420 million. Per the contract, it will provide software and systems to help modernize the army’s command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) program.
In late October 2023, CACI secured the exclusive contract for a four-year period to provide ongoing assistance to NASA's Johnson Space Center through an indefinite delivery-indefinite quantity agreement. This agreement has a maximum value of $150 million and is set to support NASA's spaceflight systems, simulation and software needs.
Earlier to that (in the same month), it secured a contract from the U.S. Air Force Research Laboratory (“AFRL”). The contract will run over the next five years and has a maximum ceiling value of $917 million. Per the terms of the deal, CACI will implement agile and adaptable processes to develop mission software and data analysis capabilities to advance and modernize AFRL’s C5ISR programs.
Additionally, CACI's longstanding partner, NGA, has started using its Sapphire imagery analytics platform and another AI-powered solution named Feature Trace. Furthermore, it deployed 16 Optical Communications Terminals above DARPA Blackjack Satellites.
These back-to-back wins are the key catalysts for the company, which boasts a large pipeline of new projects and wins deals at regular intervals. In the first quarter of fiscal 2024, this currently Zacks Rank #3 (Hold) company won contracts worth $3.1 billion and ended the quarter with a total backlog of $26.7 billion.
CACI benefits from the government being one of its biggest clients. The company’s association with the government lends stability to its business and moderates revenue fluctuations.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents per share in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 70.7% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 1.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 64.1% YTD.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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Intel Corporation (INTC) : Free Stock Analysis Report
CACI International, Inc. (CACI) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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4a43f28c-7e49-4f23-98d9-58df00280f15
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717931.0
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2023-12-14 00:00:00 UTC
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Salesforce (CRM) Boosts AI Offerings With Einstein 1 Upgrades
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DDOG
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https://www.nasdaq.com/articles/salesforce-crm-boosts-ai-offerings-with-einstein-1-upgrades
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Salesforce, Inc. CRM has unveiled groundbreaking upgrades to its Einstein 1 Platform, introducing two game-changing features — the Data Cloud Vector Database and Einstein Copilot Search. These innovations mark a significant leap in harnessing the power of enterprise data for unparalleled artificial intelligence (AI)-driven insights.
Shares of Salesforce have outperformed the industry in the year-to-date (YTD) period. CRM’s shares have rallied 94% YTD compared with the Zacks Computer – Software industry’s 55.4% growth.
What the Upgrade Brings to Einstein 1
The Data Cloud Vector Database resolves the challenge of refining large language models (LLMs) by seamlessly integrating all forms of enterprise data into AI prompts. This breakthrough empowers customers to deploy reliable, relevant generative AI across Salesforce applications without the complexities of fine-tuning off-the-shelf LLMs.
Salesforce Inc. Price and Consensus
Salesforce Inc. price-consensus-chart | Salesforce Inc. Quote
Integrated into the Einstein 1 Platform, the Data Cloud Vector Database enables AI, automation and analytics, amplifying decision-making and customer insights across every Salesforce CRM application. The database also fuels Einstein Copilot Search, enhancing Salesforce's AI assistant with dynamic search capabilities that leverage structured and unstructured business data, delivering precise information directly within the workflow.
This innovation's core capabilities are exemplary. By unifying varied data types like PDFs, emails and purchase histories, it aligns unstructured and structured data for increased business value. For instance, service leaders can significantly enhance customer satisfaction by leveraging a platform that presents relevant knowledge articles to service agents instantly, reducing case resolution time and improving overall customer experience.
Furthermore, Einstein Copilot Search, set for release in February, expands the AI assistant's capabilities by interpreting complex queries using real-time insights from diverse data sources. This feature unlocks new possibilities, enabling sales, marketing and service teams to access valuable insights (previously inaccessible) with conventional language models.
This currently Zacks Rank #3 (Hold) company’s focus on addressing the data accessibility challenge resonates strongly. With 90% of enterprise data existing in unstructured formats and anticipated to double by 2024, the urgency to effectively leverage such data is paramount. These advancements promise to revolutionize overall customer experience and drive innovation in a data-driven ecosystem.
GenAI to Drive Growth for Salesforce
Salesforce is currently focusing on incorporating generative AI tools across its products as it looks to keep its business ahead of rivals. The company forayed into the generative AI space with the launch of Einstein GPT in March 2023.
In June 2023, CRM launched its AI Cloud service, which is the company’s one-stop AI-powered solution for enterprises looking to enhance productivity. In March 2023, CRM raised its venture capital fund for generative AI to $500 million from $250 million. Moreover, in September 2023, Salesforce announced that it entered into a definitive agreement to acquire Airkit.ai, a startup that develops AI-powered customer service applications.
The latest pilot launches of Data Cloud Vector Database and Einstein Copilot Search in February 2024, herald a new era of AI-driven intelligence, reshaping the way businesses leverage data for enhanced productivity, innovation and customer-centric strategies.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents per share in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 70.7% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 1.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 64.1% YTD.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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5680068b-56c5-484b-a74f-dd5eba71d49f
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717932.0
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2023-12-13 00:00:00 UTC
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Hewlett Packard (HPE) Aids RaceTrac's IT Transformation Journey
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DDOG
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https://www.nasdaq.com/articles/hewlett-packard-hpe-aids-racetracs-it-transformation-journey
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Hewlett Packard Enterprise Company HPE recently announced that RaceTrac has selected its solutions to embark on a digital transformation journey and enhance customer experience at its gas stations and convenience stores. Houston-based RaceTrac operates gasoline service stations and convenience stores across the Southern United States.
HPE ProLiant servers likely play a crucial role in supporting RaceTrac's IT transformation journey. ProLiant servers are known for their reliability, performance and scalability, making them suitable for various business needs, including large-scale IT transformations.
HPE ProLiant servers have been deployed at RaceTrac’s more than 800 gas stations and stores to deliver reliability, security and optimized performance for a range of applications. By leveraging HPE ProLiant servers at the edge, RaceTrac can potentially transform its service stations into more efficient and responsive hubs. This infrastructure likely aids in optimizing various aspects of their operations, ultimately leading to an improved and streamlined customer experience.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
RaceTrac is also utilizing HPE’s cloud-native data infrastructure solution, Alletra Storage, which helps in improving operational efficiency. This deployment has expanded the store operator’s storage capacity while simplifying data management.
ProLiant servers have been a cornerstone of HPE's success, driving growth by meeting the evolving needs of businesses for reliable, high-performance computing infrastructure. This Zacks Rank #3 (Hold) company's continued innovation and alignment with market demands have sustained the popularity and effectiveness of ProLiant servers in driving business growth.
In January 2023, HPE expanded its ProLiant portfolio with the launch of ProLiant Gen11 servers. Equipped with 4th Gen Intel Xeon Scalable processors, ProLiant Gen11 servers are designed to deliver an intuitive cloud operating experience and support a wide range of workloads while enhancing security.
HPE’s High Performance Computing & Artificial Intelligence (HPC & AI) business segment’s revenues increased 38% year over year and 41% sequentially to $1.18 billion in fourth-quarter fiscal 2023, mainly driven by the continued strength of AI demand. The segment’s operating margin came in at 4.7%, up 120 basis points (bps) year over year and 550 bps sequentially, mainly driven by the positive benefits of scale.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up 11 cents to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 69.1% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 1.5% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 59.5% YTD.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG, each carrying a Zacks Rank #2 (Buy). DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG, each carrying a Zacks Rank #2 (Buy). DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG, each carrying a Zacks Rank #2 (Buy). DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG, each carrying a Zacks Rank #2 (Buy). DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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11e164ff-d4a0-4500-b0db-df0df60b81d2
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717933.0
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2023-12-13 00:00:00 UTC
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2 No-Brainer Growth Stocks to Buy With $150 and Hold for 10 Years
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DDOG
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https://www.nasdaq.com/articles/2-no-brainer-growth-stocks-to-buy-with-%24150-and-hold-for-10-years
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Some of the technology sector's fastest-growing companies have suffered a substantial slowdown since 2022, as a rapid rise in interest rates put the brakes on the economy.
But a rebound is underway, especially for Datadog (NASDAQ: DDOG) and Snap (NYSE: SNAP), which have produced strong financial results recently and look poised for a longer-term recovery.
Here's why investors sitting on idle cash -- money they don't need for immediate expenses -- should consider allocating $150 to buy one share of each company, with the intention of holding for the next 10 years (and beyond).
Image source: Getty Images.
1. Datadog: An essential cloud platform, now featuring AI
Datadog is a leading provider of cloud monitoring tools that help over 26,800 businesses make sense of their increasingly complex digital infrastructure. Operating online is critical in the modern economy because consumers value convenience, but doing so comes with a number of challenges, including a lack of visibility over all of the business's critical applications and growing competition.
See, if a business is having technical issues with its website or digital applications, a potential customer is a mere click away from spending their money with a competitor instead. But it's often impossible to tell whether customers are experiencing a glitch, especially if it's isolated to one region of the world. The only indicator might be a drop in sales, by which time it's too late.
Datadog integrates with a company's cloud infrastructure to monitor its status around the clock. Not only will it immediately alert technical teams to outages, but it can even warn of impending traffic spikes so they can scale their infrastructure to prevent a crash. That's especially useful for media organizations, which sometimes experience a surge in visitors in the wake of a major news event.
Now, Datadog customers can draw valuable information faster than ever thanks to the recent launch of an artificial intelligence (AI) chatbot called Bits AI. It can be prompted using natural language to speed up incident response, and it can even suggest appropriate fixes for technical issues. It also integrates with workplace collaboration platforms like Slack to autonomously push incident summaries to the entire team in real time.
Datadog stock has surged 44% since the start of November after it reported better-than-expected financial results for the recent third quarter of 2023 (ended Sept. 30). The company delivered $548 million in revenue, which was a 25% increase year over year, and also exceeded its prior forecast of $525 million. It prompted management to raise its 2023 full-year revenue guidance by $47 million to over $2.1 billion, which investors loved to see.
Datadog stock still trades 40% below its all-time high because of a slowdown in consumption on its platforms throughout 2022 and into early 2023 as customers sought to optimize their cloud spending. But management says that trend is moderating, which was evident in its recent financial results.
With Datadog's revenue and customer base at record highs, the discount in its stock spells opportunity. Cloud computing isn't going away -- in fact, the economy continues to shift further into the digital sphere -- so monitoring tools will remain critical long into the future. The introduction of AI-based tools will only cement Datadog's importance going forward.
2. Snap: Record users and falling interest rates might equal a long-term recovery
Snap is the parent company of popular social media platform Snapchat. Its stock is down 81% from its all-time high, but it has jumped 87% from its recent low point set at the end of September. This might be the beginning of a long-term recovery, because some of the headwinds hurting Snap over the last two years could soon become tailwinds.
Snapchat generates almost all of its revenue by selling advertising to businesses. With elevated inflation and rising interest rates hurting consumer spending, those businesses have cut their ad budgets for fear of a lower return on their investment. As a result, Snap's revenue declined in the first half of 2023 on a year-over-year basis.
But the tide might be turning. Inflation has come down considerably from its peak in mid-2022, and most experts agree the U.S. Federal Reserve has likely finished raising interest rates. In fact, the CME Group's FedWatch tool indicates there could be five rate cuts in 2024, which will likely make advertisers more optimistic about consumer spending.
But here's the best part. Snapchat's daily active user base continued to grow consistently throughout this turbulent period, reaching an all-time high of 406 million in the recent third quarter of 2023 (ended Sept. 30). That's important because when advertisers increase their spending, Snap will have the largest user base to monetize in its history. Therefore, the resurgence in its revenue growth could be big in the coming years.
The early signs are positive: Snap's revenue did rebound in Q3 with an increase of 5%.
Snap also continues to innovate. It has invested heavily in augmented reality (AR) experiences, of which 250 million users interact with each day. But it's also helping advertisers use AR ads; a business can now take a photo of a product and Snap's technology will render an AR-based version users can try on virtually with their smartphone camera. Watchmaker Fossil recently generated 80% more clicks than its benchmark thanks in part to Snap's AR ads.
It's only a matter of time before the broader economy becomes a tailwind for Snap's business once again. Considering users still flock to the Snapchat platform and advertisers are seeing great results from its AR innovations, the company's future looks bright. Snap stock might be on the cusp of a multiyear recovery.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool recommends CME Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But a rebound is underway, especially for Datadog (NASDAQ: DDOG) and Snap (NYSE: SNAP), which have produced strong financial results recently and look poised for a longer-term recovery. With elevated inflation and rising interest rates hurting consumer spending, those businesses have cut their ad budgets for fear of a lower return on their investment. Snapchat's daily active user base continued to grow consistently throughout this turbulent period, reaching an all-time high of 406 million in the recent third quarter of 2023 (ended Sept. 30).
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But a rebound is underway, especially for Datadog (NASDAQ: DDOG) and Snap (NYSE: SNAP), which have produced strong financial results recently and look poised for a longer-term recovery. Snap: Record users and falling interest rates might equal a long-term recovery Snap is the parent company of popular social media platform Snapchat. With elevated inflation and rising interest rates hurting consumer spending, those businesses have cut their ad budgets for fear of a lower return on their investment.
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But a rebound is underway, especially for Datadog (NASDAQ: DDOG) and Snap (NYSE: SNAP), which have produced strong financial results recently and look poised for a longer-term recovery. Datadog: An essential cloud platform, now featuring AI Datadog is a leading provider of cloud monitoring tools that help over 26,800 businesses make sense of their increasingly complex digital infrastructure. Snap: Record users and falling interest rates might equal a long-term recovery Snap is the parent company of popular social media platform Snapchat.
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But a rebound is underway, especially for Datadog (NASDAQ: DDOG) and Snap (NYSE: SNAP), which have produced strong financial results recently and look poised for a longer-term recovery. Datadog: An essential cloud platform, now featuring AI Datadog is a leading provider of cloud monitoring tools that help over 26,800 businesses make sense of their increasingly complex digital infrastructure. The company delivered $548 million in revenue, which was a 25% increase year over year, and also exceeded its prior forecast of $525 million.
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717934.0
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2023-12-12 00:00:00 UTC
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CACI International (CACI) to Support Army's C5ISR Program
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https://www.nasdaq.com/articles/caci-international-caci-to-support-armys-c5isr-program
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CACI International CACI recently secured a contract from the U.S. Army. Per the contract, CACI will provide software and systems to support the U.S. Army Combat Capabilities Development Command in modernizing the army’s command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) program.
The contract will run over the next five years and has a maximum ceiling value of $420 million. Per the terms of the deal, CACI will provide engineering support to counter growing multi and cross-domain threats and protect U.S. forces from commercial threats in the aerial, ground, subterranean, sea and undersea domains.
The company has been benefiting from new business wins from the U.S. Army, NASA, National Geospatial-Intelligence Agency (“NGA”) and DARPA. In late October 2023, CACI secured the exclusive contract for a four-year period to provide ongoing assistance to NASA's Johnson Space Center through an indefinite delivery-indefinite quantity agreement. This agreement has a maximum value of $150 million and is set to support NASA's spaceflight systems, simulation and software needs.
CACI International, Inc. Price and Consensus
CACI International, Inc. price-consensus-chart | CACI International, Inc. Quote
Earlier to that (in the same month), it secured a contract from the U.S. Air Force Research Laboratory (“AFRL”). The contract will run over the next five years and has a maximum ceiling value of $917 million. Per the terms of the deal, CACI will implement agile and adaptable processes to develop mission software and data analysis capabilities to advance and modernize AFRL’s C5ISR programs.
The company has recently implemented the U.S. Army Integrated Personnel and Pay System, including more than 1 million U.S. soldiers, with 800,000 logins and a daily user base of 100,000.
Additionally, CACI's longstanding partner, NGA, has started using its Sapphire imagery analytics platform and another AI-powered solution named Feature Trace. Furthermore, the company deployed 16 Optical Communications Terminals above DARPA Blackjack Satellites.
These back-to-back wins are the key catalysts for the company, which boasts a large pipeline of new projects and wins deals at regular intervals. In the first quarter of fiscal 2024, this currently Zacks Rank #3 (Hold) company won contracts worth $3.1 billion and ended the quarter with a total backlog of $26.7 billion.
CACI benefits from the government being one of its biggest clients. The company’s association with the government lends stability to its business and moderates revenue fluctuations.
Stocks to Consider
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up a penny to 44 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 55.7% to 95 cents in the past 60 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 66.8% year to date (YTD).
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 5.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 56.3% YTD.
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Intel Corporation (INTC) : Free Stock Analysis Report
CACI International, Inc. (CACI) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Stocks to Consider Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report CACI International, Inc. (CACI) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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8d374152-2e8a-4a34-afc8-515988567f92
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717935.0
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2023-12-11 00:00:00 UTC
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3 Tech Stocks to Turn $200,000 Into $1 Million: December 2023
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DDOG
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https://www.nasdaq.com/articles/3-tech-stocks-to-turn-%24200000-into-%241-million%3A-december-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Tech stocks filling the S&P 500 and Nasdaq 100 have fueled significant gains for long-term investors. In fact, many of the largest companies by market cap operate in this industry. If you buy and hold the right tech stocks, it’s possible to see astounding gains long-term.
However, some tech stocks offer better opportunities than others. When looking for these types of returns, investors have to target smaller companies not quite ready to join the trillion-dollar club. Below, I’ve selected three such stocks, and made sure that the largest market cap among the companies they represent is under $40 billion.
Let’s take a look.
Datadog (DDOG)
Source: La1n/Shutterstock
Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. After a disappointing 2022, the stock has enjoyed a resurgence this year. Notably, shares are up by 58% year-to-date (YTD)
Additionally, Datadog recently reported 25% year-over-year revenue growth with $22.6 million in net income. Datadog’s jump into profitability has made the stock look more enticing for investors.
Reassuringly, the company is doing a good job of managing debt as it continues to grow. Datadog has $2.8 billion in total current assets, compared to $842 million in total current liabilities.
Datadog remains financially sound in an industry that offers high growth for investors. Despite the rally, DDOG stock trades more than 40% below its all-time high. Currently, Datadog has a $37.4 billion market cap. A 5x growth rate would result in a $187 billion market cap.
Axcelis Technologies (ACLS)
Source: Pavel Kapysh / Shutterstock.com
Axcelis Technologies (NASDAQ:ACLS) is a rapidly growing semiconductor stock. The firm does not produce chips but uses its ion implantation technology to optimize chip performance. The relatively small company only has a $4 billion market cap and trades at a reasonable P/E ratio that’s currently below 18.
Shares have cooled off since the summer, now down by almost 40% from their all-time high. However, the stock is up by 57% YTD and has gained 590% over the past five years. In fact, Axcelis Technologies has already turned $200,000 into $1 million for some investors.
Despite the low valuation, Axcelis Technologies continues to achieve impressive top-line and bottom-line growth. In the third quarter, the company grew its revenue by 27.5% year-over-year. Net income jumped by 63.7% year-over-year.
James Coogan, Executive Vice President and Chief Financial Officer, highlighted that the company is achieving these growth rates during a “significant industry downturn.” When the industry picks up again, Axcelis Technologies may see its revenue growth accelerate.
Nu Holdings (NU)
Source: Wright Studio / Shutterstock.com
Nu Holdings (NYSE:NU) is a fintech company that operates in South America. If you’re a fan of the Oracle of Omaha, you’ll want to pay attention. The company has received backing from Warren Buffett, who holds almost $1 billion worth of shares.
The digital banking platform was founded in 2013 and has been available on the open market since 2021. Like many tech stocks, Nu Holdings stock endured considerable losses. However, shares have been charging ahead in 2023 and are up by 131% year-to-date.
Soaring revenue and net income growth have ignited the rally. In the third quarter, Nu Holdings reported 64% year-over-year revenue growth. Net income jumped from $7.8 million to $303.0 billion in one year.
Nu Holdings is one of the largest financial platforms on the planet with over 90 million customers. The company achieved 27% year-over-year customer growth in the most recent quarter. High growth rates combined with increasing the average value of each customer makes for a good combination.
Customer balances have grown by high double-digits for their portfolios and bank accounts. Credit card growth came in at 23% year-over-year. That growth brought the total number of active credit card customers to 38.9 million. Nu Holdings continues to impress investors and can reward people who remain patient.
On this date of publication, Marc Guberti held a long position in ACLS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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The post 3 Tech Stocks to Turn $200,000 Into $1 Million: December 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) Source: La1n/Shutterstock Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. Despite the rally, DDOG stock trades more than 40% below its all-time high. Notably, shares are up by 58% year-to-date (YTD) Additionally, Datadog recently reported 25% year-over-year revenue growth with $22.6 million in net income.
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Datadog (DDOG) Source: La1n/Shutterstock Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. Despite the rally, DDOG stock trades more than 40% below its all-time high. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech stocks filling the S&P 500 and Nasdaq 100 have fueled significant gains for long-term investors.
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Datadog (DDOG) Source: La1n/Shutterstock Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. Despite the rally, DDOG stock trades more than 40% below its all-time high. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tech stocks filling the S&P 500 and Nasdaq 100 have fueled significant gains for long-term investors.
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Datadog (DDOG) Source: La1n/Shutterstock Datadog (NASDAQ:DDOG) is a cloud infrastructure company that helps companies run more efficiently and stay safe from online hackers. Despite the rally, DDOG stock trades more than 40% below its all-time high. Currently, Datadog has a $37.4 billion market cap.
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5012bf5e-1fe7-4a05-8ab3-c56258bbd8f4
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717936.0
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2023-12-11 00:00:00 UTC
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DDOG Quantitative Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-quantitative-stock-analysis-6
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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3c7f1f23-fa6e-4c21-a278-07f17d9e6ee3
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717937.0
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2023-12-11 00:00:00 UTC
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NVIDIA (NVDA) Taps Southeast Asia Amid China Sales Restriction
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DDOG
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https://www.nasdaq.com/articles/nvidia-nvda-taps-southeast-asia-amid-china-sales-restriction
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nan
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nan
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NVIDIA Corporation NVDA is focusing on deepening its business relationship with Southeast Asian nations amid growing tensions between the United States and China, as evident from some recent events. Over the past week, the co-founder and CEO of the U.S.-based semiconductor company, Jensen Huang, has visited three Southeast Asian countries, namely Singapore, Malaysia and Vietnam.
During his visit to these nations, Huang stated that Southeast Asia could be a very important technology location. Considering the region’s expertise in packaging, assembling and battery manufacturing, he believes that it can play a major role in the semiconductor supply chain.
NVIDIA signed an artificial intelligence (AI) infrastructure deal with the Malaysian conglomerate YTL’s subsidiary, YTL Power International, during his trip to Malaysia. Per the agreement, the two companies will work together on building AI capabilities at YTL’s data center complex in Kulai, Johor. The first phase of the project is anticipated to be operational starting mid-2024. The deal is expected to be worth $4.3 billion.
In Vietnam, NVIDIA’s CEO has shown interest in deepening business ties with Vietnamese top tech firms and is also looking forward to setting a second base for the company in the country. Huang also intends to support Vietnam in training the workforce to develop AI and digital infrastructure.
The company has already invested $250 million in Vietnam through partnering with the country’s top tech companies. These collaborations focus on deploying AI across multiple industries, including cloud services, healthcare and automotive.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
NVIDIA Looks Toward Diversifying Its Market Presence
The U.S. chipmaker has been caught in the crossfire of the U.S.-China tech war. Over the past year, the U.S. government has restricted NVIDIA from selling its several advanced AI chips to China in a bid to restrict the country from getting hands-on cutting-edge technologies that can strengthen its military.
NVIDIA had earlier stated that it may be forced to discontinue its business operations from countries on the U.S. government’s export restriction list. The rules are expected to impact NVDA’s ability to support its existing customers and complete the development of certain products in a timely manner. In third-quarter fiscal 2024, the company had generated 22% of its total revenues from China (including Hong Kong).
Considering the growing risk of doing business in China amid the tech war, the company is looking to expand its market presence. In this regard, the latest investments in Southeast Asian nations could be seen as its long-term strategic move to diversify its supply chain as well as market presence.
In third-quarter fiscal 2024, Singapore, a Southeast Asian nation, generated $2.7 billion in revenues, contributing approximately 15% to NVIDIA’s total sales in the quarter. This marked a robust five-fold year-over-year growth, mainly driven by surging AI investments across the data center end-market.
We believe that NVIDIA, with its latest investments, is seems to looking for such growth from other Southeast Asian countries.
Investment in GenAI to Drive Growth
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development. The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end-market, NVIDIA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Shares of NVDA have surged 219% year to date (YTD).
Zacks Rank & Other Stocks to Consider
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while both Aspen and Datadog carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved up a penny to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have risen 68.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 60 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 60 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 5.4% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 60 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog’s shares have rallied 56.1% YTD.
4 Oil Stocks with Massive Upsides
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Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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3654ce62-b344-4c23-80b7-57a0fb11e15c
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717938.0
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2023-12-11 00:00:00 UTC
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Earnings Estimates Rising for Datadog (DDOG): Will It Gain?
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DDOG
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https://www.nasdaq.com/articles/earnings-estimates-rising-for-datadog-ddog%3A-will-it-gain-0
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nan
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nan
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Datadog (DDOG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Datadog, as there has been strong agreement among the covering analysts in raising estimates.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.43 per share, which is a change of +65.38% from the year-ago reported number.
The Zacks Consensus Estimate for Datadog has increased 10.13% over the last 30 days, as one estimate has gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $1.53 per share for the full year, which represents a change of +56.12% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Datadog. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 11.48%.
Favorable Zacks Rank
The promising estimate revisions have helped Datadog earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Datadog have attracted decent investments and pushed the stock 9.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price.
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Datadog (DDOG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 11.48%.
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Datadog (DDOG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
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Datadog (DDOG) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Datadog, as there has been strong agreement among the covering analysts in raising estimates.
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2ab5f271-282f-4fa7-ac1f-b4cefacb194c
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717939.0
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2023-12-08 00:00:00 UTC
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NVIDIA (NVDA) & YTL Reportedly in Talks on Data Center Deal
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DDOG
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https://www.nasdaq.com/articles/nvidia-nvda-ytl-reportedly-in-talks-on-data-center-deal
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nan
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NVIDIA Corporation NVDA and Malaysia’s power-to-property conglomerate, YTL, are in advanced talks on a data center deal, Reuters reported, citing three sources familiar with the matter. The potential tie-up will further strengthen business relations between the two companies, from cloud gaming to data centers.
NVIDIA and YTL’s telecom division already agreed upon a cloud gaming partnership earlier this year. The rumored potential deal is likely to involve working together on cloud infrastructure, which will most probably be anchored at YTL’s data center complex in Johor, according to Reuters.
London-based news agency sources also revealed that the possible partnership will target businesses in Southeast Asia by giving them access to NVIDIA’s artificial intelligence (AI) hardware via cloud computing.
Therefore, the deal is likely to further boost NVIDIA’s Datacenter end-market business. The Datacenter end-market business is benefiting from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. The company’s third-quarter revenues from this business segment soared 279% year over year to $14.51 billion from $3.83 billion in the year-ago quarter.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
What’s Driving Demand for AI Chips?
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
The adoption of ChatGPT among enterprises has already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development. The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. On the first-quarter fiscal 2024earnings conference call the company’s CEO, Jensen Huang, stated that existing data centers are insufficiently equipped to handle growing AI workloads.
NVIDIA’s GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. NVIDIA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter, largely driven by surging AI investments across the data center end market.
Zacks Rank & Other Stocks to Consider
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have surged 218.8% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 59.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 10 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 4 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 4.9% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 56.4% YTD.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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57f1751a-b2c3-4163-bb3b-4dcaeffecfa0
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717940.0
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2023-12-07 00:00:00 UTC
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Stifel Upgrades Datadog Inc - (DDOG)
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DDOG
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https://www.nasdaq.com/articles/stifel-upgrades-datadog-inc-ddog
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nan
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nan
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Fintel reports that on December 7, 2023, Stifel upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Hold to Buy .
Analyst Price Forecast Suggests 3.13% Upside
As of November 27, 2023, the average one-year price target for Datadog Inc - is 117.89. The forecasts range from a low of 95.95 to a high of $143.85. The average price target represents an increase of 3.13% from its latest reported closing price of 114.31.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 12.64%. The projected annual non-GAAP EPS is 1.20.
For more in-depth coverage of Datadog Inc -, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 1327 funds or institutions reporting positions in Datadog Inc -. This is an increase of 87 owner(s) or 7.02% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. Total shares owned by institutions increased in the last three months by 7.04% to 262,568K shares.
The put/call ratio of DDOG is 0.92, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 10,849K shares representing 3.30% ownership of the company. In it's prior filing, the firm reported owning 6,077K shares, representing an increase of 43.98%. The firm increased its portfolio allocation in DDOG by 73.83% over the last quarter.
Baillie Gifford holds 10,151K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 10,392K shares, representing a decrease of 2.37%. The firm decreased its portfolio allocation in DDOG by 2.92% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,387K shares representing 2.55% ownership of the company. In it's prior filing, the firm reported owning 8,327K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in DDOG by 3.20% over the last quarter.
Wcm Investment Management holds 6,292K shares representing 1.92% ownership of the company. In it's prior filing, the firm reported owning 6,204K shares, representing an increase of 1.40%. The firm decreased its portfolio allocation in DDOG by 7.71% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,095K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 6,180K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in DDOG by 3.33% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on December 7, 2023, Stifel upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Hold to Buy . Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.92, indicating a bullish outlook.
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Fintel reports that on December 7, 2023, Stifel upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Hold to Buy . Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.92, indicating a bullish outlook.
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Fintel reports that on December 7, 2023, Stifel upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Hold to Buy . Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.92, indicating a bullish outlook.
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Fintel reports that on December 7, 2023, Stifel upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Hold to Buy . Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.92, indicating a bullish outlook.
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1dbbc286-0391-4506-b9b0-34e021bacd37
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717941.0
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2023-12-07 00:00:00 UTC
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Notable Thursday Option Activity: LPG, LRCX, DDOG
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DDOG
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-lpg-lrcx-ddog
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Dorian LPG Ltd. (Symbol: LPG), where a total volume of 5,425 contracts has been traded thus far today, a contract volume which is representative of approximately 542,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.3% of LPG's average daily trading volume over the past month, of 870,850 shares. Particularly high volume was seen for the $40 strike put option expiring December 15, 2023, with 1,658 contracts trading so far today, representing approximately 165,800 underlying shares of LPG. Below is a chart showing LPG's trailing twelve month trading history, with the $40 strike highlighted in orange:
Lam Research Corp (Symbol: LRCX) saw options trading volume of 5,246 contracts, representing approximately 524,600 underlying shares or approximately 58.7% of LRCX's average daily trading volume over the past month, of 893,895 shares. Especially high volume was seen for the $710 strike call option expiring December 15, 2023, with 305 contracts trading so far today, representing approximately 30,500 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $710 strike highlighted in orange:
And Datadog Inc (Symbol: DDOG) options are showing a volume of 23,949 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 57.9% of DDOG's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $117 strike call option expiring December 08, 2023, with 4,385 contracts trading so far today, representing approximately 438,500 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $117 strike highlighted in orange:
For the various different available expirations for LPG options, LRCX options, or DDOG options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Construction Dividend Stock List
Avid Technology Next Earnings Date
Top Ten Hedge Funds Holding ORTX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $117 strike call option expiring December 08, 2023, with 4,385 contracts trading so far today, representing approximately 438,500 underlying shares of DDOG. Below is a chart showing LRCX's trailing twelve month trading history, with the $710 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 23,949 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 57.9% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
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Below is a chart showing LRCX's trailing twelve month trading history, with the $710 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 23,949 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 57.9% of DDOG's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $117 strike call option expiring December 08, 2023, with 4,385 contracts trading so far today, representing approximately 438,500 underlying shares of DDOG.
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Particularly high volume was seen for the $117 strike call option expiring December 08, 2023, with 4,385 contracts trading so far today, representing approximately 438,500 underlying shares of DDOG. Below is a chart showing LRCX's trailing twelve month trading history, with the $710 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 23,949 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 57.9% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
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Particularly high volume was seen for the $117 strike call option expiring December 08, 2023, with 4,385 contracts trading so far today, representing approximately 438,500 underlying shares of DDOG. Below is a chart showing LRCX's trailing twelve month trading history, with the $710 strike highlighted in orange: And Datadog Inc (Symbol: DDOG) options are showing a volume of 23,949 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 57.9% of DDOG's average daily trading volume over the past month, of 4.1 million shares.
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68267711-ee8b-485b-b5bb-9e81dc917ba3
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717942.0
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2023-12-07 00:00:00 UTC
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3 Tech Stocks With Huge Potential to Be 2024’s Big Winners
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DDOG
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https://www.nasdaq.com/articles/3-tech-stocks-with-huge-potential-to-be-2024s-big-winners
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While it’s impossible to predict the future, there are ways to evaluate stocks and make an educated guess about where their share price might be headed in the near term. Financial results, moving averages and price-earnings ratios can all be assessed to get an idea of a company’s health, the valuation of its stock and the pattern in which its shares have been moving. Of course, past performance is not an indication of future results. But it’s not impossible to determine if a company is healthy and whether its stock has forward momentum. Several technology stocks appear to have wind in their sails heading into the new year. These are not the usual suspects, and the stocks that we’ve all heard about ad nauseam over the past year. Here are three tech stocks with huge potential to be 2024’s big winners.
GitLab (GTLB)
Source: rafapress / Shutterstock.com
Software development company GitLab (NASDAQ:GTLB) has come out of nowhere to suddenly look like a great investment for the year ahead. GTLB stock just jumped 15% higher after the company reported its first-ever adjusted operating profit. Specifically, GitLab announced fiscal third-quarter adjusted earnings of 9 cents per share. It also said that revenue in the quarter rose 32% to $149.7 million from a year earlier. Wall Street had expected an adjusted loss of 1 cent on revenue of $141.5 million.
In terms of guidance, GitLab said it expects revenue of $157 million to $158 million and an adjusted profit of 8 cents to 9 cents a share for the current fourth quarter. Company executives said its GitLab Duo suite of artificial intelligence (AI) products is popular with software engineers and selling well. The big earnings boost has GTLB stock up 37%, and the company’s shares now have momentum heading into 2024. This is definitely a tech stock worth considering.
Spotify Technology (SPOT)
Source: Fabio Principe / Shutterstock.com
For a redemption story look to audio streaming powerhouse Spotify Technology (NYSE:SPOT). The company behind the popular music streaming and podcast service has seen its stock rise 137% in 2023 as it recovers from a brutal selloff during last year’s bear market. While SPOT stock has run far this year, the share price is currently 46% below the all-time high reached in early 2021 as the pandemic rally began to sputter. As such, there is still likely room for Spotify stock to run in the year ahead.
Analysts and investors are applauding Spotify right now for further cost controls. The company just announced it is laying off 17% of its workforce to reduce costs and adjust to slowing growth. The workforce reduction works out to roughly 1,500 jobs. It comes after Spotify reported a $70 million profit in Q3 of this year due largely to lower spending. Spotify also raised prices for its monthly subscriptions earlier this year and previously cut 8% of its workforce.
It all sets up SPOT stock for a continued run in 2024.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Not to be outdone when it comes to a big post-earnings pop is Datadog (NASDAQ:DDOG). In November, the software company’s share price rose 28% in a single trading session after it announced much better-than-expected third-quarter financial results and raised its full-year guidance. The company, whose software is widely used in cloud computing, reported earnings of 45 cents a share, beating Wall Street expectations for 34 cents.
Datadog’s sales in the quarter totaled $547.5 million, up more than 20% from a year earlier and beating analyst estimates that called for revenue of $524.1 million. However, what really caught the attention of analysts and investors was the company’s upwardly revised guidance. The company now expects Q4 revenue of $564 million to $568 million and full-year revenue of $2.1 billion. Both figures are ahead of consensus forecasts.
Datadog, which has only been publicly traded since 2019, has seen its share price rise 59% in 2023. DDOG stock is now up over 320% since its initial public offering (IPO).
On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 3 Tech Stocks With Huge Potential to Be 2024’s Big Winners appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Not to be outdone when it comes to a big post-earnings pop is Datadog (NASDAQ:DDOG). DDOG stock is now up over 320% since its initial public offering (IPO). In November, the software company’s share price rose 28% in a single trading session after it announced much better-than-expected third-quarter financial results and raised its full-year guidance.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Not to be outdone when it comes to a big post-earnings pop is Datadog (NASDAQ:DDOG). DDOG stock is now up over 320% since its initial public offering (IPO). In terms of guidance, GitLab said it expects revenue of $157 million to $158 million and an adjusted profit of 8 cents to 9 cents a share for the current fourth quarter.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Not to be outdone when it comes to a big post-earnings pop is Datadog (NASDAQ:DDOG). DDOG stock is now up over 320% since its initial public offering (IPO). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While it’s impossible to predict the future, there are ways to evaluate stocks and make an educated guess about where their share price might be headed in the near term.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Not to be outdone when it comes to a big post-earnings pop is Datadog (NASDAQ:DDOG). DDOG stock is now up over 320% since its initial public offering (IPO). The big earnings boost has GTLB stock up 37%, and the company’s shares now have momentum heading into 2024.
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2130d47b-fc8b-42f8-a811-1120e2e8bcbf
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717943.0
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2023-12-07 00:00:00 UTC
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Are You Looking for a Top Momentum Pick? Why Datadog (DDOG) is a Great Choice
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DDOG
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https://www.nasdaq.com/articles/are-you-looking-for-a-top-momentum-pick-why-datadog-ddog-is-a-great-choice
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nan
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nan
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Datadog currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For DDOG, shares are up 5.09% over the past week while the Zacks Internet - Software industry is up 2.53% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 14.32% compares favorably with the industry's 6.95% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Datadog have increased 17.26% over the past quarter, and have gained 67.41% in the last year. On the other hand, the S&P 500 has only moved 2.29% and 17.17%, respectively.
Investors should also take note of DDOG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, DDOG is averaging 3,716,471 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with DDOG.
Over the past two months, 14 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DDOG's consensus estimate, increasing from $1.32 to $1.53 in the past 60 days. Looking at the next fiscal year, 14 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that DDOG is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Datadog on your short list.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bottom Line Taking into account all of these elements, it should come as no surprise that DDOG is a #2 (Buy) stock with a Momentum Score of A. Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick.
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Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick. For DDOG, shares are up 5.09% over the past week while the Zacks Internet - Software industry is up 2.53% over the same time period.
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Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick. For DDOG, shares are up 5.09% over the past week while the Zacks Internet - Software industry is up 2.53% over the same time period.
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Investors should also take note of DDOG's average 20-day trading volume. Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick.
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df3225e7-faba-4076-905f-9a4afbf37f02
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717944.0
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2023-12-07 00:00:00 UTC
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Why Is Datadog (DDOG) Up 14.3% Since Last Earnings Report?
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DDOG
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https://www.nasdaq.com/articles/why-is-datadog-ddog-up-14.3-since-last-earnings-report
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A month has gone by since the last earnings report for Datadog (DDOG). Shares have added about 14.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Datadog due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Datadog Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Datadog reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter.
The company’s net revenues of $547.5 million increased 25.4% year over year. The Zacks Consensus Estimate for revenues was pegged at $523 million.
Quarter Details
In the third quarter of 2023, Datadog had about 3,130 customers with an annual run rate (ARR) of $100K or more, up from 2,600 in the year-ago quarter.
As of the end of the third quarter, 82% of customers used two or more products, up from 80% in the year-ago quarter. Additionally, 46% of customers utilized four or more products, up from 40% in the year-ago quarter.
Datadog’s dollar-based retention rate was slightly below 120% as customers increased their usage and adopted more products.
Operating Details
In the third quarter, Datadog’s adjusted gross margin increased 260 basis points (bps) on a year-over-year basis to 82.3%.
Research & development expenses gained 12.7% on a year-over-year basis to $155.8 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, decreased 320 bps to 28.5%.
Sales and marketing expenses increased 18.6% year over year to $127.5 million. Sales and marketing expenses, as a percentage of revenues, decreased 130 bps to 23.3%.
General & administrative expenses increased 34.2% year over year, reaching $36.8 million in the reported quarter. General & administrative expenses, as a percentage of revenues, expanded 40 bps to 6.7%.
Datadog reported a non-GAAP operating income of $130.8 million compared with $74.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Datadog had cash, cash equivalents, restricted cash and marketable securities of $2.3 billion compared with $2.2 billion as of Jun 30, 2023.
Operating cash flow was $152.8 million in the reported quarter, down from $153.2 million reported in the previous quarter.
Free cash flow during the quarter was $138.2 million compared with $141.7 million in the prior quarter.
Guidance
For the fourth quarter of 2023, Datadog anticipates revenues between $564 million and $568 million. The Zacks Consensus Estimate for the same is pegged at $541.39 million.
Non-GAAP earnings are expected in the range of 42-44 cents per share. The consensus mark for earnings is pegged at 34 cents per share.
Non-GAAP operating income is expected in the range of $129-$133 million.
For 2023, Datadog anticipates revenues between $2.103 billion and $2.107 billion. The Zacks Consensus Estimate for the same is pegged at $2.06 billion.
Non-GAAP earnings per share are expected between $1.52 and $1.54. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share.
Non-GAAP operating income is expected in the range of $453-$457 million.
Q3 Highlights
Datadog had a strong quarter for infrastructure monitoring ARR, which exceeded $1 billion due to continuous innovation and demand for serverless functions.
Datadog launched new logos, workloads and products in the third quarter. This attracted a number of exciting new customers in the third quarter.
For the second quarter in a row, the company closed a record number of new deals with more than $100,000 in annual commitments.
Some of the notable deals done in third-quarter 2023 are a seven-figure deal with a South American FinTech company, the U.S. federal agency and a Fortune 500 industrial company. Datadog’s other important agreement includes an eight-figure deal with a major American chain of convenience stores.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 690.91% due to these changes.
VGM Scores
Currently, Datadog has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Datadog has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Datadog is part of the Zacks Internet - Software industry. Over the past month, BILL Holdings (BILL), a stock from the same industry, has gained 10.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
BILL Holdings reported revenues of $304.99 million in the last reported quarter, representing a year-over-year change of +32.7%. EPS of $0.54 for the same period compares with $0.14 a year ago.
For the current quarter, BILL Holdings is expected to post earnings of $0.40 per share, indicating a change of -4.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -9.2% over the last 30 days.
BILL Holdings has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Only $1 to See All Zacks' Buys and Sells
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
BILL Holdings, Inc. (BILL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A month has gone by since the last earnings report for Datadog (DDOG). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. A month has gone by since the last earnings report for Datadog (DDOG). Datadog Q3 Earnings Beat Estimates, Revenues Rise Y/Y Datadog reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter.
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A month has gone by since the last earnings report for Datadog (DDOG). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog Q3 Earnings Beat Estimates, Revenues Rise Y/Y Datadog reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter.
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A month has gone by since the last earnings report for Datadog (DDOG). Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report BILL Holdings, Inc. (BILL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for revenues was pegged at $523 million.
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cd5c41a9-3aa0-48ce-9477-735f0265a776
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717945.0
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2023-12-07 00:00:00 UTC
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Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio
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DDOG
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https://www.nasdaq.com/articles/why-this-1-momentum-stock-could-be-a-great-addition-to-your-portfolio-227
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nan
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nan
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Datadog (DDOG)
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations including public cloud, private cloud, on-premise hardware, databases and third-party software.
DDOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. DDOG has a Momentum Style Score of A, and shares are up 14.3% over the past four weeks.
For fiscal 2023, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.21 to $1.53 per share. DDOG boasts an average earnings surprise of 28.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DDOG should be on investors' short list.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of A, and shares are up 14.3% over the past four weeks.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of A, and shares are up 14.3% over the past four weeks.
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Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B. DDOG has a Momentum Style Score of A, and shares are up 14.3% over the past four weeks.
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DDOG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B. Stock to Watch: Datadog (DDOG) Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. DDOG has a Momentum Style Score of A, and shares are up 14.3% over the past four weeks.
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b3b4a044-3621-4a8e-b0aa-8ebf52ca2e71
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717946.0
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2023-12-06 00:00:00 UTC
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Palo Alto Networks (PANW) Completes Dig Security Acquisition
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DDOG
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https://www.nasdaq.com/articles/palo-alto-networks-panw-completes-dig-security-acquisition
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Palo Alto Networks PANW revealed on Tuesday that it has completed the previously announced acquisition of Dig Security, an innovative provider of Data Security Posture Management (“DSPM”). The two companies entered into a definitive agreement in late October 2023, under which Palo Alto agreed to acquire Dig Security.
Israel-based Dig Security has developed a DSPM platform that allows organizations to discover, classify, monitor and protect sensitive data across all cloud data stores. The platform can automatically map out the data assets residing across a company’s cloud environment as well as on-premise file-sharing applications. Therefore, the acquisition of Dig Security will provide Palo Alto’s customers with enhanced visibility into and control of their multi-cloud data estate.
Dig to Boost PANW’s Prisma Cloud Capabilities
The Prisma Cloud platform brings all of Palo Alto’s cloud security solutions under one umbrella to meet the need for end-to-end networking and security solutions. This enables enterprises to better focus on business growth without worrying about security loopholes in the system.
Palo Alto Networks, Inc. Price and Consensus
Palo Alto Networks, Inc. price-consensus-chart | Palo Alto Networks, Inc. Quote
Palo Alto has integrated Dig Security’s cutting-edge capabilities into its Prisma Cloud platform. With this integration, the company has fortified Prisma Cloud capabilities, which will now be able to provide organizations with near-real-time data protection across the entire cloud estate.
Palo Alto has been continuously focusing on strengthening the Prisma Cloud platform’s comprehensive cloud security capabilities through acquisitions and the addition of new tools and features. In December 2022, the company completed the acquisition of Tel Aviv-Yafo, Israel-based company, Cider Security.
Cider Security provides application security and software supply-chain security solutions, which offer continuous integration/continuous delivery platforms from a single place. These allow IT teams to build AppSec programs more securely. Thus, Cider Security platforms help bridge the gap between security and the engineering of applications.
Prior to that, in October 2022, the company added software composition analysis tools to Prisma Cloud. By combining Cider Security’s solutions with the newly launched software composition analysis tools, Prisma Cloud will now offer the industry's most comprehensive supply-chain security solution as part of its code-to-cloud security platform.
In 2021, the company had acquired Bridgecrew. The acquisition not only strengthened the Prisma Cloud platform’s comprehensive cloud security capabilities but also made PANW the first company to provide end-to-end security across the full application lifecycle.
Zacks Rank & Stocks to Consider
Currently, Palo Alto carries a Zacks Rank #3 (Hold). Shares of PANW have surged 109.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 58.5% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 5% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 60.7% YTD.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
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Intel Corporation (INTC) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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e24ce310-4b5d-4e09-85bb-343029bab84f
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717947.0
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2023-12-06 00:00:00 UTC
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Cloud Computing Kings: 3 Companies Outperforming AWS and Azure
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DDOG
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https://www.nasdaq.com/articles/cloud-computing-kings%3A-3-companies-outperforming-aws-and-azure
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Cloud computing has helped companies save money and improve efficiency. This technology is the backbone of many corporations and is one of the last expenses these entities will cut. The significance of cloud computing stocks has helped tech stalwarts like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) power up the S&P 500 and Nasdaq-100 for several years.
While Microsoft and Amazon have been the leaders for many years, other cloud computing companies are catching up. While these companies have less market share than the tech conglomerates, they are gaining momentum.
More importantly, these three stocks have outperformed Microsoft and Amazon. Investors looking to optimize their returns in cloud computing stocks may want to consider these picks.
ServiceNow (NOW)
Source: Sundry Photography / Shutterstock.com
ServiceNow (NYSE:NOW) is a cloud computing company with over 7,700 global enterprise customers. The company’s software helps corporations streamline their work and stay safe from cyberattacks.
ServiceNow’s $140 billion market cap isn’t in the trillion-dollar territory like Microsoft and Amazon. However, NOW shares have gained 77% year-to-date and have almost quadrupled over the past five years. Shares are closing in on the all-time high they set near the end of 2021.
ServiceNow exhibits high revenue growth rates that are dwarfed by the company’s recent profit expansion. The firm exceeded its guidance in the third quarter and raised its benchmarks for the end of the year. Revenue increased by 25% year-over-year while net income surged by 202.5% year-over-year.
The dramatic growth in net income helped the company achieve a double-digit profit margin. ServiceNow has an impressive 98% renewal rate, which suggests that the rising profit margins and growing revenue are here to stay. ServiceNow can even consider price hikes in the future to drum up more revenue.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. Cloud computing software needs effective cybersecurity measures to ensure critical data doesn’t fall into the wrong hands.
Instead of creating a cloud computing solution like AWS or Microsoft Azure, Datadog allows you to watch over those platforms. The company has many high-profile customers including Twilio (NYSE:TWLO), Nasdaq (NASDAQ:NDAQ) and Maersk (OTCMKTS:AMKBY).
DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. The company recently flipped the switch to profitability and can see rapid profit expansion in the upcoming quarters. Revenue growth is still looking good as the company posted 25.4% year-over-year growth in the third quarter.
The growth among customers paying over $100,000 in annual recurring revenue is also a good sign. This figure went up from about 2,600 customers to about 3,130 customers in one year. That’s a 20.4% year-over-year growth rate using the estimated figures provided by Datadog.
Zscaler (ZS)
Source: Sundry Photography / Shutterstock.com
Zscaler (NASDAQ:ZS) is well removed from its all-time high. The stock price has been cut by nearly half but remains one of the top-performing cloud computing stocks in the market. Shares are up by 81% year-to-date and have gained 392% over the past five years.
Zscaler is a cloud security platform that keeps critical documents and data points safe. Corporations can connect it with public and private clouds to enhance their security. Zscaler prevents over nine billion incidents and policy violations per day and processes over 500 trillion daily signals. The firm has helped customers achieve faster user experiences, fewer infected machines and reduced cloud infrastructure costs.
Zscaler is a popular choice that has over 40% of the Fortune 500 companies as its customers. It’s also popular among investors for its high historical returns and impressive top-line growth.
Zscaler recently kicked off its first quarter of fiscal 2024 with 40% year-over-year revenue growth. Billings grew by 34% year-over-year which indicates the revenue growth is sticky. The company also narrowed its net losses. Once this company becomes profitable, it has the potential to rapidly expand profit margins in a short period of time.
On the date of publication, Marc Guberti did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.
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The post Cloud Computing Kings: 3 Companies Outperforming AWS and Azure appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. The firm has helped customers achieve faster user experiences, fewer infected machines and reduced cloud infrastructure costs.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing has helped companies save money and improve efficiency.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cloud computing has helped companies save money and improve efficiency.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Datadog (NASDAQ:DDOG) helps business owners stay on top of their cloud infrastructure. DDOG stock has comfortably outperformed the market with a 63.78% year-to-date gain and a 226% increase over the past five years. Shares are closing in on the all-time high they set near the end of 2021.
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5a978015-8bbc-4749-818c-244e62bd5028
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717948.0
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2023-12-05 00:00:00 UTC
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Twilio (TWLO) to Lay Off 5% Workforce to Improve Profitability
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DDOG
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https://www.nasdaq.com/articles/twilio-twlo-to-lay-off-5-workforce-to-improve-profitability
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nan
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nan
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Twilio Inc. TWLO recently revealed that it is going to further extend its workforce restructuring plan by reducing its total global workforce by approximately 5%. At the end of the third quarter of 2023, the company had 5,905 employees globally.
In a Dec 4 filing with the Securities and Exchange Commission (“SEC”), Twilio revealed that the restructuring plan has been “intended to streamline operations and accelerate the company’s path to profitable growth.”
Twilio’s current restructuring plan will include cash expenditures for employee transition, notice period and severance payments, employee benefits and related facilitation costs. This San Francisco-based company projects around $25-$35 million in charges for its restructuring plan.
The cloud communications service provider expects the majority of the charges to be incurred in the fourth quarter of 2023 and the whole process to be closed by the end of the first quarter of 2024. However, the estimated period might get extended due to different local laws and consultation requirements in various jurisdictions in which Twilio operates.
Twilio Inc. Price and Consensus
Twilio Inc. price-consensus-chart | Twilio Inc. Quote
Cost-Cutting Plans Aid Twilio’s Profitability
Internet software companies like Twilio were among the strong beneficiaries of the pandemic-induced demand boom for cloud-based services from businesses looking to operate amid lockdowns. Twilio hired aggressively in 2020 and 2021 to capitalize on the opportunity.
However, with the reopening of economies, the demand for such services started to moderate in 2022, thereby slowing the growth rate of Twilio. Additionally, growing global slowdown concerns amid the current macroeconomic challenges and geopolitical tensions have led the enterprise to push back its IT spending plans.
Therefore, Twilio announced its mega “Restructuring Plan” in September 2022, under which it has reduced its global workforce by more than 34% as well as closed certain offices by the end of third-quarter 2023. The strategy has been paying off well, as evidenced by its last four quarters’ performance, wherein it reported a strong year-over-year improvement in non-GAAP earnings per share.
Zacks Rank & Stocks to Consider
Currently, Twilio carries a Zacks Rank #3 (Hold). Shares of TWLO have risen 37.9% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel and Aspen each sport a Zacks Rank #1 (Strong Buy) at present, while Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 60.2% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 0.6% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 60.8% YTD.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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85f703a6-aeb0-451c-babb-d67082a00460
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717949.0
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2023-12-05 00:00:00 UTC
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These 3 stocks are Cowen’s best ideas for 2024 including AstraZeneca and Datadog
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DDOG
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https://www.nasdaq.com/articles/these-3-stocks-are-cowens-best-ideas-for-2024-including-astrazeneca-and-datadog
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nan
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nan
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New Year lists and resolutions are just part of the celebrations – and that holds true for stock investors, too. Every year, like clockwork, Wall Street’s research firms and analysts will take some time to publish their ‘top picks’ and ‘best ideas’ for the coming year. This year, Cowen is obliging us, with its list of the ‘Best Ideas for 2024,’ and we can dig into their recommendations for some valuable New Year market advice.
It’s an interesting list, with stocks from varied sectors, from health care to high tech to necessary utilities, and includes some major names; companies like AstraZeneca and Datadog are quickly recognizable as leaders in their fields.
So, let’s take a look ‘under the hood’ of these stocks, and find out why they’re Cowen’s best ideas. Using the TipRanks platform, we can also see how the rest of the Street expects the coming months to pan out for these names. Here are the details, presented with the commentaries from the Cowen analysts.
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AstraZeneca (AZN)
We’ll start in the world of Big Pharma, where British-based AstraZeneca, with $44.35 billion in annual revenue last year, ranks as the ninth largest drug company in the world. AstraZeneca works in the development, manufacture, and marketing of both old and new pharmaceuticals, as well as other biotech products for the medical sector.
AstraZeneca’s operations – both the sale of existing drugs in the company portfolio and its development of new drugs – are divided into a number of separate medical categories. These include portfolios in cardiovascular, gastrointestinal, neuroscience, oncology, and respiratory specialties, as well as work on the treatment of inflammatory and infectious diseases. The company has an American subsidiary, Alexion, based in Boston, that specializes in orphan drugs used in the treatment of rare diseases.
Overall, AstraZeneca can boast more than 50 approved drugs on the market across its categories. The company’s research and development pipeline includes 167 projects, of which 14 are ‘new molecular entities,’ or novel drug candidates, in the late stages of pipeline development.
Turning to AZN’s financial performance, we find that the company brought in $11.5 billion in 3Q23, a result that was up almost 5% year-over-year – although it did miss the forecast by approximately $40 million. At the bottom line, AstraZeneca reported a non-GAAP earnings per share of $1.73; this was up 4% from the year-ago period, and came in 91 cents better than had been expected. For the period January through September 2023, the equivalent figures were $33.8 billion at the top line and $5.80 per share at the bottom line. Looking ahead, the company increased its guide for 2023 to a mid-single-digit uptick for total revenues from the prior expectation of a low-to-mid single-digit increase.
Cowen analyst Steve Scala covers AstraZeneca, and he is impressed by the company’s sound combination of overall position and future prospects. While he doesn’t point to any single ‘standout’ feature here, he does come down firmly on the side of Goldilocks, that this one is just right: “AZN has promising new products and pipeline and participates in many large, high-growth markets. These prospects are further strengthened by Alexion's durable revenue outlook. EPS growth appears above industry average, with upside possible. In sum, AZN's outlook is one of the strongest in pharma, yet the valuation is on par with the pharma sector average.”
These comments support Scala’s Outperform (Buy) rating, while his $86 price target indicates potential for a 32% upside in the coming year. (To watch Scala’s track record, click here.)
There are 6 recent analyst reviews on this drug company, and they break down 5 to 1 in favor the Buys over the Holds – to give AZN a Strong Buy consensus rating. The shares are selling for $65.02, and the $81.5 average price target suggests a one-year upside of 25%. (See AstraZeneca’s stock forecast.)
Itron, Inc. (ITRI)
Next up on our list of Cowen’s picks is Itron, an interesting tech company that works with both Internet of Things technology and the legacy utility industry. Itron has developed a line of products, from both the hardware and software ends, that permit utility providers to better streamline their service. These include utility meters, modules, and sensors on the hardware end, to analysis, services, and smart payments on the software end.
Overall, Itron’s products allow utility companies to network their communications, automate their meter management and billings, and keep accurate records of service delivery. Itron’s hardware and tools will allow cities and utility companies together to better oversee their utility and water management, and allow the achievement of ambitious goals to cut public energy use without cutting public services.
There is a market for this, and Itron’s recent performance shows that. In the last quarter reported, 3Q23, Itron’s revenues came to $561 million, up 33% y/y and beating the estimates by $20.7 million. The company’s bottom line, the non-GAAP diluted EPS, was reported at 98 cents per share, a figure that was 47 cents per share better than expected. Those are substantial beats, and show an underlying strength to the company.
Jeff Osborne, in his coverage of ITRI for Cowen, notes that the company has achieved its impressive year-to-date results despite headwinds coming from the semiconductor chip sector. He writes of ITRI, “We see continued momentum for Itron in 2024 as the company continues to showcase the value its Distributed Intelligence (DI) and distributed energy management solutions provide. The company performed well in 2023, but operations and execution were still impacted by semiconductor availability, especially during 1H23. With these headwinds effectively in the rearview, we see 2024 as a year for Itron to further showcase its ability to expand margins and deliver on strong backlog levels that are 'recession resilient' in an uncertain macro.”
For Osborne, this adds up to an Outperform (Buy) rating, that supports his $95 price target and 35% upside prediction on ITRI shares. (To watch Osborne’s track record, click here.)
While the Cowen view here is bullish, this stock still has a Hold rating from the analyst consensus. This is based on 9 analyst reviews that include 3 Buys, 5 Holds, and 1 Sell. The shares have a current trading price of $70.15 and an average price target of $76.16 that implies a one-year gain of 8.5%. (See Itron’s stock forecast.)
Datadog, Inc. (DDOG)
Last on our list is Datadog, a company in the cloud software world. Datadog offers a range of observability tools, designed to provide real-time data analysis gleaned from monitoring, tracking, and securing cloud-based websites. At its heart, Datadog makes cloud monitoring systems available to customers through the popular as-a-Service subscription model.
It’s a good business model to bet on. Our digital infrastructure is shifting toward a cloud-based architecture, and Datadog is right there with the tools administrators will need to keep it running smoothly. These include package deals, offering automation, source control, bug tracking, troubleshooting, optimization, and basic monitoring instrumentation that customers will need to keep tabs on their own sites. Other features permit easy navigation and searching of site logs, tools to follow and generate key metrics and site traces, the high-quality data necessary for proactive decision making.
Datadog is always working to expand its products and its business, and made several announcements to that end just in November. The company announced that it had expanded the tools available on its monitoring and security platform for cloud applications; that it had expanded its existing strategic partnership with Google Cloud and completed an integration with Vertex AI; and that it had expanded its observability and security support for AWS serverless applications. These are important moves, that will enhance Datadog’s position in the cloud universe.
That position is already strong. The company last released financial results in early November, and saw its shares jump as much as 28% in response. The 3Q23 report beat the forecasts at both the top and bottom lines – revenue was $547.54 million, up 25% y/y and $23.3 million ahead of the estimates, while non-GAAP earnings came in at 45 cents per diluted share, 11 cents better than the forecast. The outlook was strong too, with revenue for Q4 expected in the range between $564 million and $568 million, compared to consensus at $543.95 million and non-GAAP EPS anticipated to come in between $0.42 and $0.44 vs. the Street’s $0.34 forecast.
This all gives Andrew Sherman the impetus he needed to mark Datadog as Cowen’s ‘Best Idea’ heading into next year. Citing the recent solid earnings report, among other factors, Sherman writes, “DDOG is our Best Idea for 2024. DDOG is a clear leader in observability & we see them as the #1 beneficiary from tool consolidation onto a single platform, a trend that is accelerating. Coming off the strong 3Q & guide, we see reacceleration likely in Q4 & mid-20s growth in '24, w/ upside likely if historical AWS multiplier holds. At ~41x EV/CY25E FCF, we think valuation is attractive.”
Sherman’s stance is complemented by his Outperform (Buy) rating, and his price target, set at $140, implies the stock will gain 18.5% over the coming year. (To watch Sherman’s track record, click here.)
While the Cowen analyst is bullish on DDOG, the Street has a bit of caution mixed with its optimism. The stock gets a Moderate Buy consensus rating, based on 27 recent analyst reviews that include 15 Buys over 12 Holds. The $116 average price target suggests the shares will stay rangebound for the time being. (See Datadog’s stock forecast.)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog, Inc. (DDOG) Last on our list is Datadog, a company in the cloud software world. Citing the recent solid earnings report, among other factors, Sherman writes, “DDOG is our Best Idea for 2024. DDOG is a clear leader in observability & we see them as the #1 beneficiary from tool consolidation onto a single platform, a trend that is accelerating.
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Datadog, Inc. (DDOG) Last on our list is Datadog, a company in the cloud software world. Citing the recent solid earnings report, among other factors, Sherman writes, “DDOG is our Best Idea for 2024. DDOG is a clear leader in observability & we see them as the #1 beneficiary from tool consolidation onto a single platform, a trend that is accelerating.
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Datadog, Inc. (DDOG) Last on our list is Datadog, a company in the cloud software world. Citing the recent solid earnings report, among other factors, Sherman writes, “DDOG is our Best Idea for 2024. DDOG is a clear leader in observability & we see them as the #1 beneficiary from tool consolidation onto a single platform, a trend that is accelerating.
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Datadog, Inc. (DDOG) Last on our list is Datadog, a company in the cloud software world. Citing the recent solid earnings report, among other factors, Sherman writes, “DDOG is our Best Idea for 2024. DDOG is a clear leader in observability & we see them as the #1 beneficiary from tool consolidation onto a single platform, a trend that is accelerating.
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8c3d9110-a581-4bb3-85de-bcca355e5384
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717950.0
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2023-12-05 00:00:00 UTC
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Scotiabank Initiates Coverage of Datadog Inc - (DDOG) with Sector Outperform Recommendation
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DDOG
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https://www.nasdaq.com/articles/scotiabank-initiates-coverage-of-datadog-inc-ddog-with-sector-outperform-recommendation
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Fintel reports that on December 5, 2023, Scotiabank initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Sector Outperform recommendation.
Analyst Price Forecast Suggests 0.20% Downside
As of November 27, 2023, the average one-year price target for Datadog Inc - is 117.89. The forecasts range from a low of 95.95 to a high of $143.85. The average price target represents a decrease of 0.20% from its latest reported closing price of 118.13.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 12.64%. The projected annual non-GAAP EPS is 1.20.
For more in-depth coverage of Datadog Inc -, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 1327 funds or institutions reporting positions in Datadog Inc -. This is an increase of 87 owner(s) or 7.02% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. Total shares owned by institutions increased in the last three months by 7.04% to 262,567K shares.
The put/call ratio of DDOG is 0.91, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 10,849K shares representing 3.30% ownership of the company. In it's prior filing, the firm reported owning 6,077K shares, representing an increase of 43.98%. The firm increased its portfolio allocation in DDOG by 73.83% over the last quarter.
Baillie Gifford holds 10,151K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 10,392K shares, representing a decrease of 2.37%. The firm decreased its portfolio allocation in DDOG by 2.92% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,387K shares representing 2.55% ownership of the company. In it's prior filing, the firm reported owning 8,327K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in DDOG by 3.20% over the last quarter.
Wcm Investment Management holds 6,292K shares representing 1.92% ownership of the company. In it's prior filing, the firm reported owning 6,204K shares, representing an increase of 1.40%. The firm decreased its portfolio allocation in DDOG by 7.71% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,095K shares representing 1.86% ownership of the company. In it's prior filing, the firm reported owning 6,180K shares, representing a decrease of 1.40%. The firm decreased its portfolio allocation in DDOG by 3.33% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on December 5, 2023, Scotiabank initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Sector Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.91, indicating a bullish outlook.
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Fintel reports that on December 5, 2023, Scotiabank initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Sector Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.91, indicating a bullish outlook.
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Fintel reports that on December 5, 2023, Scotiabank initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Sector Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.91, indicating a bullish outlook.
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Fintel reports that on December 5, 2023, Scotiabank initiated coverage of Datadog Inc - (NASDAQ:DDOG) with a Sector Outperform recommendation. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.43%. The put/call ratio of DDOG is 0.91, indicating a bullish outlook.
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659a488a-f3dc-4de3-9d92-80e73ce26c0e
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717951.0
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2023-12-05 00:00:00 UTC
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Why Datadog Soared Over 43% in November
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DDOG
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https://www.nasdaq.com/articles/why-datadog-soared-over-43-in-november
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nan
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nan
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Shares of software observability star Datadog (NASDAQ: DDOG) soared 43.1% in November, according to data from S&P Global Market Intelligence.
The company, which makes software that enables businesses to maintain and track the performance of all its software apps, reported earnings toward the end of the month that blew past expectations. Management also guided for strong growth in the current quarter.
In addition, a couple of lower-than-expected inflation reports helped bring interest rates down, aiding the fortunes of a high-growth technology stocks.
Datadog executes and hints at more strength
In its third quarter, Datadog outperformed analyst expectations, with third-quarter revenue surging 25% to $547.5 million and adjusted (non-GAAP) earnings per share of $0.45. Datadog also guided for revenue and adjusted earnings above the consensus for the current quarter.
Like many other cloud software companies, Datadog has seen a lot of customers seek to cut costs on their cloud bills over the past year. However, management's commentary on Datadog'searnings callappeared to encourage investors that the worst may be over:
We are seeing signs that the cloud optimization activity from some of our customers may be moderating. As a reminder, last quarter, we discussed a cohort of customers who began optimizing about a year ago, and we said that they appeared to stabilize their usage growth at the end of Q2. That trend has held for the past several months with that cohort's usage remaining stable throughout Q3. Overall, we continue to see the impact from optimization in our business, but we believe that the intensity and breadth of optimization we've experienced in recent quarters is moderating.
In addition, management noted a "healthy start" to the fourth quarter in October.
All in all, it was a positive report that the cost-cutting among cloud customers seen over the past year may be ending. Furthermore, Datadog looks like one of the winners of the new cohort of cloud software-as-a-service (SaaS) companies, as it is purpose-built in the cloud and taking share from other observability competitors that have had to adopt their pre-cloud technology from on-premises licenses.
In addition to earnings, Datadog also benefited when the October Consumer Price Index (CPI) and Producer Price Index (PPI) came in softer than expected. In that aftermath, the yield on long-term Treasury bonds came down from its October highs. And a lower long-term rate especially helps high-multiple stocks like Datadog, with the bulk of its profits out in the future.
Datadog stock is pricey, but high-quality
Datadog is definitely not cheap today after its November run, at a whopping 19 times sales. Still, it is likely to emerge as a winner of the digital transformation going on across global corporations, which now seems to be reaccelerating. So, it's a name for aggressive young growth investors to consider. Just note that the stock is highly valued, and therefore may be susceptible to big drawdowns at any slight disappointment.
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Billy Duberstein has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of software observability star Datadog (NASDAQ: DDOG) soared 43.1% in November, according to data from S&P Global Market Intelligence. In addition, a couple of lower-than-expected inflation reports helped bring interest rates down, aiding the fortunes of a high-growth technology stocks. As a reminder, last quarter, we discussed a cohort of customers who began optimizing about a year ago, and we said that they appeared to stabilize their usage growth at the end of Q2.
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Shares of software observability star Datadog (NASDAQ: DDOG) soared 43.1% in November, according to data from S&P Global Market Intelligence. The company, which makes software that enables businesses to maintain and track the performance of all its software apps, reported earnings toward the end of the month that blew past expectations. Like many other cloud software companies, Datadog has seen a lot of customers seek to cut costs on their cloud bills over the past year.
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Shares of software observability star Datadog (NASDAQ: DDOG) soared 43.1% in November, according to data from S&P Global Market Intelligence. Datadog executes and hints at more strength In its third quarter, Datadog outperformed analyst expectations, with third-quarter revenue surging 25% to $547.5 million and adjusted (non-GAAP) earnings per share of $0.45. Like many other cloud software companies, Datadog has seen a lot of customers seek to cut costs on their cloud bills over the past year.
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Shares of software observability star Datadog (NASDAQ: DDOG) soared 43.1% in November, according to data from S&P Global Market Intelligence. As a reminder, last quarter, we discussed a cohort of customers who began optimizing about a year ago, and we said that they appeared to stabilize their usage growth at the end of Q2. All in all, it was a positive report that the cost-cutting among cloud customers seen over the past year may be ending.
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a4d82f09-0f4d-4f19-b973-de266b72e071
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717952.0
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2023-12-04 00:00:00 UTC
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Validea Detailed Fundamental Analysis - DDOG
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DDOG
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-ddog-8
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap stock in the Software & Programming industry. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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09f4eb8b-89eb-4246-b00f-48e0e5aeb7ac
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717953.0
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2023-12-01 00:00:00 UTC
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Marvell (MRVL) Q3 Earnings Beat, Stock Falls on Tepid Guidance
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DDOG
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https://www.nasdaq.com/articles/marvell-mrvl-q3-earnings-beat-stock-falls-on-tepid-guidance
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nan
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nan
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Marvell Technology MRVL reported better-than-expected results for the third quarter of fiscal 2024, wherein the top and bottom lines outpaced the Zacks Consensus Estimate. Additionally, the chipmaker’s third-quarter revenues and earnings came above the midpoint of management’s guidance range.
Despite reporting stronger-than-expected third-quarter results, MRVL stock fell 4.6% during Thursday’s extended trading session as its guidance for the fourth-quarter top and bottom lines fell short of the consensus mark.
Before discussing fourth-quarter forecasts, let’s delve deeper into the third-quarter performance first.
Wilmington, DE-based Marvell reported non-GAAP earnings of 41 cents per share, beating the Zacks Consensus Estimate by a penny. The bottom line was also above the midpoint of the company’s previous forecast of 40 cents (+/- 5 cents).
The semiconductor company reported revenues of $1.42 billion, which surpassed the consensus mark of $1.40 billion. The top line was also higher than the midpoint of management’s guidance of $1.40 billion (+/- 5%).
However, non-GAAP earnings per share and revenues fell 28.1% and 7.7%, respectively, from the year-ago quarter. This decline can primarily be attributed to customer inventory reduction actions and a weakening demand environment across the enterprise networking end market amid the ongoing macroeconomic uncertainty.
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote
Quarterly Details
Data center revenues of $555.8 million decreased 11% year over year but increased 21% sequentially. The robust sequential increase was primarily driven by strong revenue growth across artificial intelligence (AI) and standard cloud infrastructure, partially offset by depressed demand for data center storage.
The segment accounted for 39% of the quarter’s total revenues, highlighting that it is currently MRVL’s largest end market. Our estimate for Data Center’s third-quarter revenues was pegged at $532.7 million.
Revenues from enterprise networking plunged 28% year over year and 17% sequentially to $271.1 million and accounted for 19% of the total revenues. The year-over-year decline was primarily due to inventory corrections and weak demand environment in this end market. Our estimate for enterprise networking’s third-quarter revenues was pegged at $290.4 million.
Carrier infrastructure revenues, which constituted 22% of the total revenues, soared 17% year over year and 15% sequentially to $316.5 million. The rise was primarily driven by the increased demand for its wireless infrastructure. Our estimate for the division’s third-quarter revenues was pegged at $281.8 million.
Automotive/Industrial revenues grew 26% year over year to $106.5 million, mainly driven by strong growth in the automotive business. However, the segment’s revenues declined 3% sequentially. Revenues from this segment constituted 8% of the total revenues. Our estimate for the Automotive/Industrial’s third-quarter revenues was pegged at $110.1 million.
Consumer revenues, representing 12% of the total revenues, decreased 5% year over year to $168.7 million. However, sales from this end market increased 1% sequentially. Our estimate for Consumer’s third-quarter revenues was pegged at $185.7 million.
Marvell’s non-GAAP gross profit of $859.2 million reflected a year-over-year decline of 12.7%. However, the non-GAAP gross profit improved approximately 6.3% sequentially. The non-GAAP gross margin of 60.6% contracted 340 basis points (bps) on a year-over-year basis but expanded 30 bps sequentially. The sequential increase in the non-GAAP gross margin was mainly driven by higher revenues and cost improvements.
Non-GAAP operating expenses of $437 million increased 4% year over year but declined 2.4% sequentially.
Marvell’s non-GAAP operating margin of 29.8% contracted 690 bps from the year-ago quarter but improved 290 bps sequentially. The quarter-over-quarter expansion in the non-GAAP operating margin was mainly driven by an improved gross margin and lower operating expenses.
Balance Sheet and Cash Flow
Marvell exited the third quarter with cash and cash equivalents of $725.6 million compared with the previous quarter’s $423 million. The company’s long-term debt totaled $4.09 billion, higher than the previous quarter’s $3.13 billion.
The company generated cash worth $503 million through operational activities in the third quarter and $823.9 million in the first nine months of fiscal 2024.
Marvell returned $101.8 million to shareholders by repurchasing $50 million worth of common stock and $51.8 million in dividend payments in the third quarter. During the first nine months of fiscal 2024, the company repurchased stocks worth $50 million and paid out $154.9 million in dividend payments.
Guidance
For the fourth quarter of fiscal 2024, Marvell expects revenues of $1.42 billion (+/- 5%), slightly lower than the Zacks Consensus Estimate of $1.46 billion. The non-GAAP gross margin is likely to be approximately 63.5%-64.5%, while non-GAAP operating expenses are estimated to be approximately $430 million.
The company projects non-GAAP earnings per share for the fourth quarter to be approximately 46 cents (+/- 5 cents). The consensus mark for fourth-quarter non-GAAP earnings is currently pegged at 49 cents per share.
Zacks Rank & Stocks to Consider
Currently, Marvell carries a Zacks Rank #3 (Hold). Shares of MRVL have risen 50.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to 95 cents in the past seven days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 69.1% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 9.1% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 21 cents to $1.53 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 58.6% YTD.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Intel Corporation (INTC) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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5159a275-b1b3-47ae-9a8f-46bcb77edc2c
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717954.0
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2023-11-30 00:00:00 UTC
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Is Datadog (DDOG) Stock Outpacing Its Computer and Technology Peers This Year?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-ddog-stock-outpacing-its-computer-and-technology-peers-this-year
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nan
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nan
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Datadog (DDOG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Datadog is one of 624 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Datadog is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, DDOG has moved about 58.7% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 46.6% on a year-to-date basis. As we can see, Datadog is performing better than its sector in the calendar year.
Another stock in the Computer and Technology sector, QuickLogic (QUIK), has outperformed the sector so far this year. The stock's year-to-date return is 152%.
Over the past three months, QuickLogic's consensus EPS estimate for the current year has increased 43.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Datadog belongs to the Internet - Software industry, a group that includes 147 individual stocks and currently sits at #35 in the Zacks Industry Rank. On average, stocks in this group have gained 57.7% this year, meaning that DDOG is performing better in terms of year-to-date returns.
In contrast, QuickLogic falls under the Electronics - Semiconductors industry. Currently, this industry has 40 stocks and is ranked #198. Since the beginning of the year, the industry has moved +56.8%.
Datadog and QuickLogic could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Only $1 to See All Zacks' Buys and Sells
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Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
QuickLogic Corporation (QUIK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On average, stocks in this group have gained 57.7% this year, meaning that DDOG is performing better in terms of year-to-date returns. Has Datadog (DDOG) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher.
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Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report QuickLogic Corporation (QUIK) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Datadog (DDOG) been one of those stocks this year?
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report QuickLogic Corporation (QUIK) : Free Stock Analysis Report To read this article on Zacks.com click here. Has Datadog (DDOG) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher.
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Has Datadog (DDOG) been one of those stocks this year? Within the past quarter, the Zacks Consensus Estimate for DDOG's full-year earnings has moved 6700% higher. According to our latest data, DDOG has moved about 58.7% on a year-to-date basis.
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cf3e02d0-dc95-4444-b04a-bfb54b073aab
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717955.0
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2023-11-30 00:00:00 UTC
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Market Pullback Setting up the Year End Rally: 2 Must Follow Stocks for Investors
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DDOG
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https://www.nasdaq.com/articles/market-pullback-setting-up-the-year-end-rally%3A-2-must-follow-stocks-for-investors
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nan
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nan
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From my point of view, it looks like the Nasdaq 100 and S&P 500 broke down from a consolidation this morning and are likely to continue lower through next week. Investors need not fret though as this minor correction should set up a powerful year-end rally.
Over the last month, equities have staged one of the most rigorous rallies that I can recall, with the Nasdaq rallying nearly 15% in that time. It should come as no surprise to traders that the market may have to correct some before the next leg higher, as markets do not move in a straight line.
Here, I am going to share a shortlist of top ranked stocks I think investors may want to buy following this brief selloff. These stocks, which are mid-cap technology focused, have been showing tremendous momentum since the start of Q4, and I expect the relative strength to continue into the year end.
Additionally, each of these stocks have run up significantly in the last few weeks, so a period of rest should allow them to form some new bull flags to break out from. It is worth noting that all chart drawings are rough estimates for visualizing one possible path, and not strict expectations.
Image Source: TradingView
Datadog
Datadog DDOG is a leading cloud monitoring and analytics platform that helps organizations gain visibility into their infrastructure, applications, and digital operations. Founded in 2010, Datadog offers a comprehensive suite of tools for monitoring, troubleshooting, and optimizing cloud-based environments, making it easier for businesses to ensure the reliability and performance of their digital services.
The platform provides real-time insights and data visualization, helping teams proactively manage and scale their IT resources efficiently. Datadog is a crucial player in the field of observability and cloud monitoring.Top of Form
Reflecting upward trending earnings revisions, Datadog enjoys a Zacks Rank #2 (Buy) rating. Current quarterly earnings estimates have increased 26.5% in the last month and are projected to climb 65.4% YoY to $0.43 per share. FY23 earnings estimates have been raised by 16% and are forecast to grow 56% YoY to $1.53 per share. Sales for this year are expected to grow 25.7% YoY to $2.1 billion and 21.3% next year to $2.6 billion.
Image Source: Zacks Investment Research
After gapping higher from a broad pennant last month following a 32% earnings beat, investors have been buying DDOG shares hand over fist. The stock has been forming consolidations and breaking out week after week.
I anticipate DDOG share price to trade sideways over the next week or two, building another bull flag. If it forms and breaks out, it should lead to a powerful year end rally.
Image Source: TradingView
Pinterest
Pinterest PINS is a social media and visual discovery platform where businesses can create profiles to reach a broad audience. Their primary revenue streams come from advertising, where businesses promote Pins to target users, and eCommerce integration, enabling users to shop for products directly on the platform. By combining inspirational content with targeted advertising and shopping features, Pinterest offers businesses a unique opportunity to engage with users and drive sales.
Pinterest boasts a Zacks Rank #1 (Strong Buy) rating, indicating strongly upward trending earnings revisions. Current quarter earnings estimates have been revised higher by 8.7% and FY23 by 11.5%.
Additionally, Pinterest trades at an appealing valuation. With a forward earnings multiple of 31x, and EPS growth forecasts of 36% annually, it has a PEG ratio of 0.87x, signaling a discount valuation.
Image Source: Zacks Investment Research
Just this week, Pinterest broke out from a clean bull flag, gapping higher two days in a row. Consecutive gaps like this indicate urgency from institutional buyers and should lead to more appreciation in the stock.
Like DDOG, I expect PINS to consolidate over the next week or two as stocks correct, which should lead to another bull flag and subsequent breakout.
Image Source: TradingView
Bottom Line
Investors should welcome a couple of weeks of steady selling, as this recent run-up needs to blow off some steam. Furthermore, a period of rest for the bulls should set up the market for further gains.
The last two weeks of the year are well known to be one of the most bullish periods, often referred to as the Santa Claus rally. For the prepared investors, Christmas should come right on time.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services likeSurprise Trader, Stocks Under $10, Technology Innovators,and more. They've already closed 162 positions with double- and triple-digit gains in 2023 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research After gapping higher from a broad pennant last month following a 32% earnings beat, investors have been buying DDOG shares hand over fist. Image Source: TradingView Datadog Datadog DDOG is a leading cloud monitoring and analytics platform that helps organizations gain visibility into their infrastructure, applications, and digital operations. I anticipate DDOG share price to trade sideways over the next week or two, building another bull flag.
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Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: TradingView Datadog Datadog DDOG is a leading cloud monitoring and analytics platform that helps organizations gain visibility into their infrastructure, applications, and digital operations. Image Source: Zacks Investment Research After gapping higher from a broad pennant last month following a 32% earnings beat, investors have been buying DDOG shares hand over fist.
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Image Source: Zacks Investment Research After gapping higher from a broad pennant last month following a 32% earnings beat, investors have been buying DDOG shares hand over fist. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: TradingView Datadog Datadog DDOG is a leading cloud monitoring and analytics platform that helps organizations gain visibility into their infrastructure, applications, and digital operations.
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Image Source: TradingView Datadog Datadog DDOG is a leading cloud monitoring and analytics platform that helps organizations gain visibility into their infrastructure, applications, and digital operations. Image Source: Zacks Investment Research After gapping higher from a broad pennant last month following a 32% earnings beat, investors have been buying DDOG shares hand over fist. I anticipate DDOG share price to trade sideways over the next week or two, building another bull flag.
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12e2d6e6-018b-464c-bc25-e512d78ce8d6
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717956.0
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2023-11-30 00:00:00 UTC
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Should Datadog Stock Really Be a Top Buy Right Now?
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DDOG
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https://www.nasdaq.com/articles/should-datadog-stock-really-be-a-top-buy-right-now
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nan
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nan
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Analytics and cloud observability stock Datadog (NASDAQ: DDOG) is off to the races again. After a dip through the late summer and autumn months, shares have rallied, boosted by yet another stellar quarterly earnings update despite slowing software industry growth. Shares are now up over 50% so far in 2023.
The stock's valuation remains quite high, though, even as Datadog makes rapid progress on its key profitability metrics. Is it really a top stock to buy right now?
Datadog is now profitable on nearly all counts
The big headline from Datadog's third-quarter 2023 earnings report was that revenue increased 25% year over year to nearly $548 million, and the outlook for the fourth quarter is for as much as $568 million -- a nice sequential increase of 3.6%, and implying a year-over-year increase of as much as 17%.
These are encouraging numbers, given a widespread slowdown in software spending this year as the economy slowed and organizations looked for ways to cut expenses and conserve cash. Datadog's trajectory certainly slowed as well (it grew 63% in 2022), but it's still performing admirably on the top line and very much still a growth business.
But of greater importance at this point is Datadog's profitability. The market has been punishing businesses that ignore the bottom line now that the U.S. Federal Reserve and other central banks raised interest rates and tightened easy-money policies. Datadog reported its first positive generally accepted accounting principles (GAAP) net income since the first quarter of 2022, notching a net profit of $22.6 million last quarter (compared to a GAAP net loss of $26 million in the prior year quarter).
Additionally, free cash flow (FCF) also continues to be steady. It was $147 million in Q3, representing an FCF profit margin of 27%. Good Datadog.
Data by YCharts.
How rich is too rich?
Of particular note, Datadog was able to report net profit last quarter, due in large part to interest income of nearly $30 million, a result of its massive $2.34 billion in cash and short-term investments on balance. GAAP operating income remains slightly in the red.
Free cash flow does subtract the $123 million in employee stock-based compensation (SBC) in Q3, which was up 22% from last year's Q3 SBC. Clearly, Datadog still has some new tricks it can learn to improve its profit margins, especially as it anticipates its growth rates to further slow down.
In all, this is why I continue to call out what appears to be a too-rich valuation of over 70 times trailing-12-month free cash flow. Make no mistake -- Datadog has some great things going for it. All of that cash on balance could be fuel for years of strong growth if the company can deploy it toward new product development and/or strategic acquisitions. But Datadog isn't as profitable as it appears, and the decelerating revenue growth can cause some issues going forward if those GAAP net income and free cash flow margins don't meaningfully increase.
As in times past, for investors who really like the long-term potential of this top data analytics and cloud computing infrastructure business, a dollar-cost average plan looks like a prudent way to buy. But I'm staying on the sidelines and watching Datadog stock from afar right now.
10 stocks we like better than Datadog
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*Stock Advisor returns as of November 27, 2023
Nicholas Rossolillo and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Analytics and cloud observability stock Datadog (NASDAQ: DDOG) is off to the races again. The market has been punishing businesses that ignore the bottom line now that the U.S. Federal Reserve and other central banks raised interest rates and tightened easy-money policies. Of particular note, Datadog was able to report net profit last quarter, due in large part to interest income of nearly $30 million, a result of its massive $2.34 billion in cash and short-term investments on balance.
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Analytics and cloud observability stock Datadog (NASDAQ: DDOG) is off to the races again. Datadog is now profitable on nearly all counts The big headline from Datadog's third-quarter 2023 earnings report was that revenue increased 25% year over year to nearly $548 million, and the outlook for the fourth quarter is for as much as $568 million -- a nice sequential increase of 3.6%, and implying a year-over-year increase of as much as 17%. Datadog reported its first positive generally accepted accounting principles (GAAP) net income since the first quarter of 2022, notching a net profit of $22.6 million last quarter (compared to a GAAP net loss of $26 million in the prior year quarter).
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Analytics and cloud observability stock Datadog (NASDAQ: DDOG) is off to the races again. Datadog is now profitable on nearly all counts The big headline from Datadog's third-quarter 2023 earnings report was that revenue increased 25% year over year to nearly $548 million, and the outlook for the fourth quarter is for as much as $568 million -- a nice sequential increase of 3.6%, and implying a year-over-year increase of as much as 17%. Datadog reported its first positive generally accepted accounting principles (GAAP) net income since the first quarter of 2022, notching a net profit of $22.6 million last quarter (compared to a GAAP net loss of $26 million in the prior year quarter).
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Analytics and cloud observability stock Datadog (NASDAQ: DDOG) is off to the races again. But Datadog isn't as profitable as it appears, and the decelerating revenue growth can cause some issues going forward if those GAAP net income and free cash flow margins don't meaningfully increase. As in times past, for investors who really like the long-term potential of this top data analytics and cloud computing infrastructure business, a dollar-cost average plan looks like a prudent way to buy.
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83199ff7-c375-4a89-9f7c-cbcf1eceebcd
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717957.0
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2023-11-30 00:00:00 UTC
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Salesforce (CRM) Soars 9% on Q3 Earnings Beat, Raises Guidance
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DDOG
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https://www.nasdaq.com/articles/salesforce-crm-soars-9-on-q3-earnings-beat-raises-guidance
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nan
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nan
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Salesforce CRM shares gained 8.7% during Wednesday’s extended trading session after the enterprise software maker reported better-than-expected third-quarter results and raised guidance for the full fiscal 2024.
The enterprise cloud computing solution provider’s third-quarter non-GAAP earnings increased 51% to $2.11 per share from $1.40 reported in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $2.06. The robust year-over-year bottom line was mainly driven by higher sales and the benefits of ongoing cost-restructuring initiatives, which include the trimming of the workforce and a reduction in office spaces.
Salesforce’s quarterly revenues of $8.72 billion climbed 11% year over year, surpassing the Zacks Consensus Estimate of $8.71 billion. The top line also improved 10% in constant currency.
Salesforce has been benefiting from the resilient demand for its cloud and business software offerings in an uncertain macroeconomic environment as customers are continuing with their major digital transformation. The strong third-quarter top-line performance also reflects the benefits of its go-to-market strategy and sustained focus on customer success.
Additionally, the company’s initiative to integrate artificial intelligence into its offerings, like Slack and the launch of a generative AI-enabled Einstein GPT product, also boosted the demand for its solutions during the reported quarter.
Salesforce Inc. Price, Consensus and EPS Surprise
Salesforce Inc. price-consensus-eps-surprise-chart | Salesforce Inc. Quote
Quarterly Details
Coming to CRM’s business segments, revenues from Subscription and Support (93% of the total revenues) increased 12.6% from the year-earlier period to $8.14 billion. However, Professional Services and Other (7% of the total sales) revenues decreased 4.1% to $579 million. Our third-quarter revenue estimates for the Subscription and Support and Professional Services segments were pegged at $8 billion and $701.8 million, respectively.
Under the Subscription and Support segment, Sales Cloud revenues grew 11% year over year to $1.91 billion. Revenues from Service Cloud also improved 12% to $2.07 billion.
Marketing & Commerce Cloud revenues jumped 9% to $1.23 billion. Salesforce Platform and Other revenues were up 11% to $1.69 billion. Also, revenues from Data increased 22% year over year to $1.25 billion.
Our estimates for Sales, Service, Market & Commerce, Platform & Other, and Data Cloud services third-quarter revenues were pegged at $1.86 billion, $2.01 billion, $1.24 billion, $1.7 billion and $1.19 billion, respectively.
Geographically, Salesforce registered revenue growth of 9% in America (67% of the total revenues), 18% in the Asia Pacific (10%) and 14% in the EMEA (23%) on a year-over-year basis.
Salesforce’s gross profit came in at $6.57 billion, up 14% from the prior-year period. Moreover, the gross margin improved 200 basis points (bps) to 75.3%.
Salesforce recorded a non-GAAP operating income of $2.72 billion, highlighting an increase of approximately 53% from the year-ago quarter’s level of $1.78 billion. Moreover, the non-GAAP operating margin expanded 850 bps to 31.2% from 22.7% in the year-ago quarter due to lower operating expenses as a percentage of total sales. Operating expenses as a percentage of revenues declined to 58% from 67% in the year-ago quarter.
Balance Sheet & Other Details
Salesforce exited the fiscal third quarter with cash, cash equivalents and marketable securities of $11.9 billion, down from the $12.4 billion recorded at the end of the previous quarter.
CRM generated operating cash flow of $1.53 billion and free cash flow of $1.37 billion in the third quarter. During the first nine months of fiscal 2024, the company generated operating and free cash flows of $6.83 billion and $6.24 billion, respectively.
As of Oct 31, 2023, the current remaining performance obligation reflecting revenues under contract for the next 12 months was $23.9 billion, up 14% on a year-over-year basis. The company bought back shares worth $1.93 billion in the third quarter and $5.93 billion during the first nine months of fiscal 2024. With this buyback of shares, CRM now has approximately $6 billion remaining under its current authorization limit of $20 billion.
Strong Guidance for Q4 and FY24
Salesforce provided strong guidance for the fourth quarter and updated the outlook for fiscal 2024. For the fiscal fourth quarter, Salesforce projects total sales between $9.18 billion and $9.23 billion (midpoint $8.205 billion), indicating 10% year-over-year growth.
The company expects no impact on fourth-quarter revenues from foreign currency exchange rates. Furthermore, CRM anticipates non-GAAP earnings per share in the band of $2.25-$2.26 for the current quarter.
For fiscal 2024, Salesforce narrowed the revenue guidance range to $34.75-$34.8 billion from the previous forecast in the band of $34.7-$34.8 billion. The company expects foreign currency exchange rates to negatively impact its fiscal 2024 revenues by $50 million.
Salesforce raised the fiscal 2024 non-GAAP earnings forecast to $8.18 and $8.19 per share instead of the $8.04-$8.06 per share band anticipated earlier. The company raised its fiscal 2024 estimates for the non-GAAP operating margin to approximately 30.5% from 30% expected previously. Moreover, it now anticipates operating cash flow to increase 30-33% year over year in fiscal 2024, up from the earlier projection of 22-23% growth.
Salesforce’s upbeat guidance for fiscal 2024 reflects the benefits of the company’s recent price hike and the resilient demand for its solutions despite the challenging macroeconomic environment. In July 2023, CRM announced a price hike across its core products — Sales Cloud, Service Cloud, Marketing Cloud, Industries and Tableau — by an average of 9%, effective from August 2023.
The hike marked Salesforce’s first product price increase in the last seven years. The company stated that it invested more than $20 billion in the last seven years in research and development to deliver 22 new releases and add thousands of new features, including the recent generative artificial intelligence, to its software.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have surged 86.5% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past seven days. The consensus estimate for 2023 earnings has increased 4 cents to 95 cents in the past seven days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 70.4% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 9.2% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 2 cents to $1.53 per share in the past seven days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 60.5% YTD.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ce1dfc60-aed5-422a-9a26-dffa4f3c380e
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717958.0
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2023-11-29 00:00:00 UTC
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DDOG Factor-Based Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-factor-based-stock-analysis-3
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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8f5f8afc-6af5-4942-8445-4c041cafafab
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717959.0
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2023-11-29 00:00:00 UTC
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Hewlett Packard (HPE) Q4 Earnings Beat Estimates, Sales Meet
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DDOG
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https://www.nasdaq.com/articles/hewlett-packard-hpe-q4-earnings-beat-estimates-sales-meet
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nan
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nan
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Hewlett Packard Enterprise HPE reported fourth-quarter fiscal 2023 non-GAAP earnings of 52 cents per share, which came ahead of the Zacks Consensus Estimate by 4%. The reported figure was 9% lower than the year-ago quarter but was up 6% sequentially. The bottom line also came at the higher end of management’s guidance range of 48-52 cents per share.
Revenues of $7.35 billion decreased 7% (down 6% at constant currency [cc]) from the prior-year quarter but increased 5% sequentially. The top line was in line with the Zacks Consensus Estimate and came at the midpoint of management’s guidance range of $7.2-$7.5 billion. The annualized revenue run rate was up 39% year over year to $1.3 billion.
Hewlett Packard continued to witness the sustainable demand for its products and services during the quarter. Despite high inflationary pressure, macroeconomic headwinds and geopolitical issues, the company managed to report stronger-than-expected earnings and in-line revenues.
The top line benefited from exceptional performance in areas like the Intelligent Edge, where revenues remained much closer to quarterly records and HPE GreenLake, which continues to accelerate strategic pivot, generating higher recurring revenues and gross profit across four product segments, driven by the increased mix of high-margin software and services.
Hewlett Packard Enterprise Company Price, Consensus and EPS Surprise
Hewlett Packard Enterprise Company price-consensus-eps-surprise-chart | Hewlett Packard Enterprise Company Quote
Segment Performance
Segment-wise, High-Performance Compute & Artificial Intelligence revenues increased 38% (up 38% at cc) year over year and 41% sequentially to $1.18 billion, mainly driven by the continued strength of AI demand. The segment’s operating margin came in at 4.7%, up 120 basis points (bps) year over year and 550 bps sequentially, mainly driven by the positive benefits of scale.
Revenues in the Intelligent Edge division soared 41% (up 40% at cc) year over year to $1.36 billion during the quarter but declined 4% sequentially. The robust year-over-year surge was primarily driven by the strong demand for its software-centric solutions, such as HP Aruba Central cloud management software and SASE security software suite. The division’s operating profit margin of 29.5% expanded 1,600 bps from the year-ago quarter but contracted 20 bps sequentially.
Financial Service revenues increased 2% (flat at cc) from the prior-year period to $876 million. Quarterly revenues were marginally higher than the previous quarter’s revenues of $873 million. The segment’s operating margin of 8.9% contracted 220 bps year over year but improved 50 bps sequentially. Net portfolio assets of $13.1 billion increased 4.3% year over year.
The Compute division’s sales declined 31% (down 30% at cc) year over year and 1% sequentially to $2.6 billion. The decrease in revenues from the year-ago quarter reflects a tough year-over-year comparison. The division reported an operating profit margin of 9.8%, down 510 bps from the year-ago quarter and 110 bps from the previous quarter.
Revenues from the Storage business came in at $1.11 billion but declined 13% (12% at cc) from the year-ago quarter. However, the figure improved 3% sequentially. The division’s operating margin contracted 730 bps year over year and 260 bps sequentially to 8.1%.
Corporate Investments & Other revenues were $318 million, up 13% (12% at cc) year over year.
Operating Results
The non-GAAP gross profit increased 1.7% to $2.56 billion. Meanwhile, the non-GAAP margin expanded 170 basis points (bps) to 34.8%.
Hewlett Packard’s non-GAAP operating profit plunged 21.3% to $710 million, while the non-GAAP operating margin contracted 180 bps year over year to 9.7%.
Balance Sheet and Cash Flow
Hewlett Packard ended the fiscal fourth quarter with $4.27 billion in cash and cash equivalents compared with $2.91 billion at the end of the previous quarter.
In the fiscal fourth quarter, HPE generated $2.8 billion in cash for operational activities and $2.3 billion in free cash flow. During full fiscal 2023, it generated operating cash flow and free cash flow of $4.4 billion and $2.2 billion, respectively.
The company returned $1.04 billion to shareholders in fiscal 2023 by repurchasing $421 million worth of its common stock and $619 million in dividend payments in the reported quarter.
HPE announced that its board approved a quarterly cash dividend of 13 cents per share payable on Jan 11, 2024, to shareholders recorded as of Dec 13, 2023.
First-Quarter & FY24 Guidance
Hewlett Packard initiated guidance for the first quarter and updated the outlook for fiscal 2024. The company forecasts to generate revenues between $6.9 billion and $7.3 billion in the fiscal first quarter. The company estimates GAAP and non-GAAP diluted net earnings per share (EPS) in the range of 24-32 cents and 42-50 cents, respectively.
For fiscal 2023, HPE reiterates revenues and non-GAAP EPS guidance. HPE continues to anticipate 2-4% constant currency growth in revenues for fiscal 2024. The company reaffirmed its non-GAAP EPS guidance range of $1.82-$2.02 for fiscal 2024. However, it lowered the GAAP EPS forecast to $1.81-$2.01 from $1.83-$2.03 projected earlier.
For fiscal 2024, HPE anticipates operating profit growth on a GAAP and non-GAAP basis in the range of 15-21% and 3-5%, respectively. It also reiterates free cash flow guidance of $1.9-$2.1 billion for the fiscal. Moreover, it intends to return approximately 65-75% of its fiscal 2024 free cash flow to shareholders through share repurchases and dividend payouts.
Zacks Rank & Stocks to Consider
Hewlett Packard currently carries a Zacks Rank #3 (Hold). Shares of HPE have declined 2.8% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved a penny north to 44 cents per share in the past seven days. The consensus estimate for 2023 earnings has increased 4 cents to 95 cents in the past seven days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 67.3% YTD.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 10.7% YTD.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 55.4% YTD.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Intel Corporation (INTC) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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2c8e9d45-a3af-4982-bcfc-996aaf92abe5
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717960.0
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2023-11-28 00:00:00 UTC
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Datadog (DDOG) Enhances Security Support for AWS Serverless
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-enhances-security-support-for-aws-serverless
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nan
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nan
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Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Unveiled at AWS re:Invent, the new features enable users to identify security threats, assess state machine performance and monitor OpenTelemetry-instrumented services.
Datadog has enhanced its support for AWS serverless applications, addressing the unique challenges associated with these applications that eliminate the need for managing infrastructure components. The expanded capabilities include W3C Trace Context Propagation, allowing teams to view comprehensive distributed traces across various OpenTelemetry-instrumented services for improved issue troubleshooting.
Additionally, developers can now utilize vendor-neutral code instrumentation for custom OpenTelemetry spans in Node.JS and Python runtimes. Datadog introduces threat detection for AWS Lambda functions, enabling DevOps and security engineers to identify and safeguard against attacks targeting these applications. In public beta, there's an open-source vulnerability detection feature that provides the real-time assessment of vulnerabilities in third-party libraries within AWS Lambda applications.
Furthermore, DDOG introduces AWS Step Function Execution Visualization, offering a visual representation of execution paths for easier troubleshooting and anomaly identification within Step Functions.
Shares of this Zacks Rank #2 (Buy) company have gained 52.3% year to date against the Zacks Computer and Technology sector’s fall of 45.7% due to constant innovation by Datadog. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog, Inc. Price and Consensus
Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote
Datadog’s New Security Features to Aid Customer Growth
Datadog has incorporated identity, vulnerability and application-level insights into its Security Inbox, offering engineers a consolidated view to enhance security posture without added complexity. These additions empower developers and security teams to address security issues proactively, moving cloud security further into the software development lifecycle.
The Security Inbox now provides a unified perspective on critical issues for DevOps and security teams, spanning cloud accounts, Kubernetes clusters, containers and applications. With the introduced features, Datadog facilitates the early detection and resolution of identity and access-related risks through the general availability of its Cloud Infrastructure and Entitlement Management.
These new features are expected to aid DDOG’s customer growth in the upcoming quarters.
The Zacks Consensus Estimate for DDOG’s 2023 customers is pegged at 27,931, indicating year-over-year growth of 20.4%. The Zacks Consensus Estimate for revenues in 2023 is pegged at $2.11 billion, indicating year-over-year growth of 25.69%.
Datadog faces tough competition from giants like Palo Alto Networks PANW and Broadcom's AVGO VMware in the cloud security market.
Palo Alto Networks is recognized for its extensive range of cybersecurity products safeguarding against cyber threats. This commitment to comprehensive security extends to its cloud security offerings, notably exemplified in Prisma Cloud. Prisma Cloud offers robust features for workload security management. Tailored solutions from the company are crafted to offer enhanced visibility and control over applications, users and content, ultimately mitigating the risk of potential data breaches.
VMware stands out as a prominent supplier of virtualization and cloud computing solutions, and it has capitalized on this position to curate a notable suite of cloud security solutions aimed at safeguarding organizational data and infrastructure in the cloud. Utilizing its global network of Secure Access Service Edge points of presence, VMW ensures security and performance alignment for cloud applications and workloads.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Furthermore, DDOG introduces AWS Step Function Execution Visualization, offering a visual representation of execution paths for easier troubleshooting and anomaly identification within Step Functions. These new features are expected to aid DDOG’s customer growth in the upcoming quarters.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Furthermore, DDOG introduces AWS Step Function Execution Visualization, offering a visual representation of execution paths for easier troubleshooting and anomaly identification within Step Functions.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Furthermore, DDOG introduces AWS Step Function Execution Visualization, offering a visual representation of execution paths for easier troubleshooting and anomaly identification within Step Functions.
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Datadog DDOG announced that it has increased security and observability assistance for Amazon’s AMZN Amazon Web Services’ (“AWS") serverless applications utilizing Lambda and Step Functions. Furthermore, DDOG introduces AWS Step Function Execution Visualization, offering a visual representation of execution paths for easier troubleshooting and anomaly identification within Step Functions. These new features are expected to aid DDOG’s customer growth in the upcoming quarters.
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b37e5a4a-604c-4c30-a282-42884926ef3c
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717961.0
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2023-11-28 00:00:00 UTC
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CrowdStrike (CRWD) Hits Fresh High: Is There Still Room to Run?
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DDOG
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https://www.nasdaq.com/articles/crowdstrike-crwd-hits-fresh-high%3A-is-there-still-room-to-run
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nan
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nan
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Shares of CrowdStrike Holdings (CRWD) have been strong performers lately, with the stock up 20.3% over the past month. The stock hit a new 52-week high of $213.14 in the previous session. CrowdStrike Holdings has gained 99.5% since the start of the year compared to the 46.4% move for the Zacks Computer and Technology sector and the 54.8% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 30, 2023, CrowdStrike reported EPS of $0.74 versus consensus estimate of $0.56.
For the current fiscal year, CrowdStrike is expected to post earnings of $2.82 per share on $3.04 billion in revenues. This represents an 83.12% change in EPS on a 35.58% change in revenues. For the next fiscal year, the company is expected to earn $3.46 per share on $3.89 billion in revenues. This represents a year-over-year change of 22.67% and 27.99%, respectively.
Valuation Metrics
CrowdStrike may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
CrowdStrike has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 74.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 36X. On a trailing cash flow basis, the stock currently trades at 465.1X versus its peer group's average of 16.9X. Additionally, the stock has a PEG ratio of 2.08. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CrowdStrike currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CrowdStrike fits the bill. Thus, it seems as though CrowdStrike shares could still be poised for more gains ahead.
How Does CRWD Stack Up to the Competition?
Shares of CRWD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Datadog, Inc. beat our consensus estimate by 32.35%, and for the current fiscal year, DDOG is expected to post earnings of $1.71 per share on revenue of $2.11 billion.
Shares of Datadog, Inc. have gained 39.2% over the past month, and currently trade at a forward P/E of 73.25X and a P/CF of 1133.69X.
The Internet - Software industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CRWD and DDOG, even beyond their own solid fundamental situation.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CrowdStrike (CRWD) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog, Inc. beat our consensus estimate by 32.35%, and for the current fiscal year, DDOG is expected to post earnings of $1.71 per share on revenue of $2.11 billion. One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
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Click to get this free report CrowdStrike (CRWD) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
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Click to get this free report CrowdStrike (CRWD) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.
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One industry peer that looks good is Datadog, Inc. (DDOG). DDOG has a Zacks Rank of # 2 (Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A. Datadog, Inc. beat our consensus estimate by 32.35%, and for the current fiscal year, DDOG is expected to post earnings of $1.71 per share on revenue of $2.11 billion.
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57e7418b-82f9-4b14-ad0b-76329f06ca08
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717962.0
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2023-11-28 00:00:00 UTC
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Rapid Cloud Adoption to Drive Salesforce's (CRM) Q3 Earnings
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DDOG
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https://www.nasdaq.com/articles/rapid-cloud-adoption-to-drive-salesforces-crm-q3-earnings
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nan
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nan
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Salesforce CRM is slated to report third-quarter fiscal 2024 results on Nov 29. The cloud-based software maker’s third-quarter performance is expected to have benefited from the positive demand environment as customers are continuing with cloud migration and digital transformation initiatives despite the current macroeconomic headwinds.
Click here to know how CRM’s overall fiscal third-quarter results are likely to be.
Cloud Adoption to Drive Q3 Revenues
The rapid adoption of software-as-a-service-based platforms amid the ongoing hybrid working trend is expected to have spurred the demand for Salesforce’s cloud-based solutions. The enterprise software maker’s diverse cloud offerings are likely to have helped expand its clientele, fueling the top line.
Moreover, the growing demand for generative artificial intelligence (AI)-enabled cloud-based solutions is anticipated to have aided top-line growth in the third quarter. Salesforce is currently focusing on incorporating generative AI tools across its products as it looks to keep its business ahead of rivals. Its focus on AI and the substantial progress in its Einstein Analytics platform make us optimistic about the upcoming quarterly results.
Salesforce Inc. Price and EPS Surprise
Salesforce Inc. price-eps-surprise | Salesforce Inc. Quote
The company’s initiatives to capitalize on the overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion. Further, the improved customer experience is anticipated to have aided the cloud segment. Additionally, Salesforce’s ability to provide an integrated solution for customers’ business problems is expected to have been the key driver.
However, a decline in software spending by small and medium businesses amid ongoing macroeconomic headwinds and geopolitical issues may have affected Salesforce’s fiscal third-quarter performance. On the second-quarter fiscal 2024 conference call, CRM had stated that customers are scrutinizing every deal, and it is witnessing an elongated deal cycle and deal compression. Our estimate for the Subscription and Support segment’s third-quarter revenues is pegged at approximately $8 billion.
Salesforce also revealed that its professional service business has been seeing less demand for multi-year transformation deals as well as project delays in some cases. Our estimate for the Professional Services segment’s third-quarter revenues is pegged at approximately $701.8 million.
Furthermore, stiff competition from Oracle and Microsoft is a concern, along with forex headwinds.
Zacks Rank & Stocks to Consider
Salesforce currently carries a Zacks Rank #3 (Hold). Shares of CRM have soared 59.7% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel sports a Zacks Rank #1 (Strong Buy) at present, while Aspen and Datadog each carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved north 10 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 30 cents to 91 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have surged 64.9% year to date.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 10.4% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 52.3% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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335bb171-cefa-4636-9e41-acd51a8c7b80
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717963.0
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2023-11-27 00:00:00 UTC
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Datadog Inc - (DDOG) Price Target Increased by 11.35% to 117.89
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DDOG
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https://www.nasdaq.com/articles/datadog-inc-ddog-price-target-increased-by-11.35-to-117.89
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nan
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nan
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The average one-year price target for Datadog Inc - (NASDAQ:DDOG) has been revised to 117.89 / share. This is an increase of 11.35% from the prior estimate of 105.88 dated October 31, 2023.
The price target is an average of many targets provided by analysts. The latest targets range from a low of 95.95 to a high of 143.85 / share. The average price target represents an increase of 4.45% from the latest reported closing price of 112.87 / share.
For more in-depth coverage of Datadog Inc -, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 1322 funds or institutions reporting positions in Datadog Inc -. This is an increase of 47 owner(s) or 3.69% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.99%. Total shares owned by institutions increased in the last three months by 5.46% to 261,368K shares.
The put/call ratio of DDOG is 1.02, indicating a bearish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 10,849K shares representing 3.30% ownership of the company. In it's prior filing, the firm reported owning 6,077K shares, representing an increase of 43.98%. The firm increased its portfolio allocation in DDOG by 73.83% over the last quarter.
Baillie Gifford holds 10,151K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 10,392K shares, representing a decrease of 2.37%. The firm decreased its portfolio allocation in DDOG by 2.92% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.53% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
Wcm Investment Management holds 6,292K shares representing 1.92% ownership of the company. In it's prior filing, the firm reported owning 6,204K shares, representing an increase of 1.40%. The firm decreased its portfolio allocation in DDOG by 7.71% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.88% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The average one-year price target for Datadog Inc - (NASDAQ:DDOG) has been revised to 117.89 / share. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.99%. The put/call ratio of DDOG is 1.02, indicating a bearish outlook.
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The average one-year price target for Datadog Inc - (NASDAQ:DDOG) has been revised to 117.89 / share. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.99%. The put/call ratio of DDOG is 1.02, indicating a bearish outlook.
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The average one-year price target for Datadog Inc - (NASDAQ:DDOG) has been revised to 117.89 / share. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.99%. The put/call ratio of DDOG is 1.02, indicating a bearish outlook.
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The average one-year price target for Datadog Inc - (NASDAQ:DDOG) has been revised to 117.89 / share. Average portfolio weight of all funds dedicated to DDOG is 0.49%, an increase of 1.99%. The put/call ratio of DDOG is 1.02, indicating a bearish outlook.
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a0cb355d-e765-4ba9-bee4-2be72d50d226
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717964.0
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2023-11-23 00:00:00 UTC
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Wall Street Analysts See Datadog (DDOG) as a Buy: Should You Invest?
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DDOG
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https://www.nasdaq.com/articles/wall-street-analysts-see-datadog-ddog-as-a-buy%3A-should-you-invest
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nan
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nan
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG).
Datadog currently has an average brokerage recommendation (ABR) of 1.82, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 33 brokerage firms. An ABR of 1.82 approximates between Strong Buy and Buy.
Of the 33 recommendations that derive the current ABR, 18 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 54.6% and 9.1% of all recommendations.
Brokerage Recommendation Trends for DDOG
Check price target & stock forecast for Datadog here>>>
While the ABR calls for buying Datadog, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is DDOG a Good Investment?
In terms of earnings estimate revisions for Datadog, the Zacks Consensus Estimate for the current year has increased 6000% over the past month to $1.51.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Datadog. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Datadog may serve as a useful guide for investors.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Datadog (DDOG). Brokerage Recommendation Trends for DDOG Is DDOG a Good Investment?
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de46bb6b-fa20-43d3-ba5e-98a848726a97
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717965.0
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2023-11-23 00:00:00 UTC
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HP (HPQ) Q4 Sales Hurt by Soft Demand for Personal Computers
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DDOG
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https://www.nasdaq.com/articles/hp-hpq-q4-sales-hurt-by-soft-demand-for-personal-computers
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nan
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nan
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HP Inc.’s HPQ quarterly top-line results continue to be battered by soft personal computer (PC) demand. The PC and printer maker’s net revenues for the recently reported fourth quarter of fiscal 2023 fell 6.5% year over year to $13.8 billion. In constant currency (cc), revenues declined 5% in the fourth quarter.
The dismal top line reflected a weak performance in HPQ’s Personal Systems (“PS”) and Printers segments. PS revenues (68% of net revenues) came in at $9.4 billion, which was 8% lower than the year-ago quarter’s figure (7% down at cc). Our estimate for the PS segment’s revenues was pegged at $9.08 billion.
Fourth-quarter revenues from the Consumer PS segment declined 1% year over year to $3.19 billion, while the Commercial PS division’s sales plunged 11% to $6.21 billion. Our revenue estimates for the Consumer PS and Commercial PS segments were pegged at $2.4 billion and $6.68 billion, respectively.
In 2020 and 2021, PC manufacturers benefited from the increased demand amid the pandemic-induced remote-working and online learning wave. The pandemic necessitated using PC systems for remote work, web-based learning, video conferencing, video gaming, social media, consumer entertainment and streaming or online shopping.
However, consumers have become more cautious about their spending due to inflationary pressure, rising interest rates and fears of a possible recession. Furthermore, enterprises are delaying their large IT spending amid macroeconomic challenges.
HP Inc. Price, Consensus and EPS Surprise
HP Inc. price-consensus-eps-surprise-chart | HP Inc. Quote
HP Expects PC Market Recovery in FY24
Despite a weak top-line performance, HP is optimistic about PC market recovery. During its fourth-quarterearnings conference call the company suggested that artificial intelligence (AI) PCs could be a key growth driver beginning next year.
However, HPQ cautioned that the market would not immediately shift to AI PCs. HP anticipates gradual penetration of AI PCs, with some in 2024 and stronger in 2025. The company forecasts that 40%-60% of all PCs will be AI PCs in the next three years. Therefore, it is planning to roll out AI PCs in the second half of 2024 to grab the growing opportunities in this category.
PC market recovery expectations of HPQ coincide with the independent research firm Gartner’s views. During its preliminary data release for third-quarter 2023 global PC shipments, Gartner pointed out that the worst could be over for vendors by the end of 2023, and PC market recovery can be seen in 2024 due to increased demand driven by the PC refreshment cycle.
Mikako Kitagawa, the Director Analyst at Gartner, stated, “The business PC market is ready for the next replacement cycle, driven by the Windows 11 upgrades. Consumer PC demand should also begin to recover as PCs purchased during the pandemic are entering the early stages of a refresh cycle.”
Garter forecast that PC shipments would grow 4.9% in 2024, driven by increased shipments across both the business and consumer segments.
Additionally, we believe that inventories coming near healthy levels and the growing interest in generative AI-enabled PCs might give a fresh boost to PC demand in the years ahead.
Zacks Rank & Stocks to Consider
HP currently carries a Zacks Rank #3 (Hold). Shares of HPQ have declined 0.5% year to date.
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. While Intel and Aspen each sports a Zacks Rank #1 (Strong Buy) at present, Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved north 10 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 30 cents to 91 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 136.3%. Shares of INTC have rallied 64.9% year to date.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have dropped 10.4% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Datadog shares have rallied 52.3% year to date.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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7931ea94-1a00-44d1-8d47-49fb3e0872d0
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717966.0
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2023-11-22 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Datadog, Duolingo and Pinterest
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DDOG
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-datadog-duolingo-and-pinterest
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nan
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nan
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For Immediate Release
Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS.
Momentum Masters: 3 Mid-Cap Stocks Investors Can Buy Now
In a stock market that refuses to go down, mid-cap technology stocks offer some of the most compelling return opportunities available to investors. These companies are bringing unique and innovative solutions to their markets, enjoy tremendous growth rates, and have the potential to become truly revolutionary companies.
These stocks present opportunities for long-term investments based on value-creating solutions and promising business models as well as short-term trading opportunities driven by powerful momentum driving these stocks higher.
In this article, I will share three such stocks that enjoy considerable price momentum and top Zacks Ranks.
Datadog
Datadog is a US-based software company that offers a cloud-based monitoring and analytics platform. The platform allows organizations to gain real-time visibility into the performance of their applications and infrastructure. Datadog's solutions collect, analyze, and visualize data from various sources, helping IT and development teams monitor and optimize the performance, security, and reliability of their digital operations.
Datadog has experienced some significant revisions higher to its earnings estimates, giving it a Zacks Rank #2 (Buy) rating. Current quarter earnings estimates have increased by 26.5% and are projected to climb 65.4% YoY to $0.43 per share.
FY23 earnings have been upgraded by 14.4% and are forecast to grow 54.1% YoY to $1.51 per share. FY23 sales are expected to show a 25.7% YoY increase to $2.11 billion.
Since its massive earnings beat, and gap up, Datadog stock has been on fire, trading from one breakout to the next. Over the last week, DDOG has been building out another convincing bull flag. If the price can trade above the $112 level, it would signal a breakout and likely continue to new yearly highs.
On the flip side, if the stock loses support at $108.70, the setup is invalidated, and investors may want to wait for another opportunity.
Duolingo
Duolingo is the world's most popular language learning app with over 13 million active users. It is an educational technology company that creates learning apps and language certifications. Duolingo offers courses to learn over 40 different languages as well as courses on music and math. DUOL went public in June 2021.
Earnings estimates for Duolingo have snapped higher over the last week giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings estimates have increased from -$0.02 to $0.16 and FY23 from -$0.07 to $0.25.
It is a huge development to see the company flip to net profitable and should draw a steady stream of new investors.
DUOL too has a compelling technical momentum trade setup. Over the last two weeks, the price has been forming a bull flag, which could propel the stock significantly higher. If DUOL can trade above $218.50, it would confirm a technical breakout. However, below $203.75 and the setup breaks down, and should be avoided.
Pinterest
Pinterest is a social media and visual discovery platform. It allows users to discover and save ideas for various interests, including home decor, fashion, recipes, travel, and more, by creating digital collections known as "boards." Users can explore and share images and content they find inspiring or interesting. Pinterest serves as a platform for both personal inspiration and business promotion, with many businesses and content creators using it to reach and engage with their target audiences through visual content. PINS has 482 million monthly active users and generates revenue through ad sales.
Analysts have unanimously upgraded Pinterest's earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings are expected to grow 72.4% YoY and FY23 are projected to climb 69.4% YoY.
Based on these revised earnings estimates, Pinterest stock is trading like a value investment. With a forward earnings multiple of 30.5x, and EPS forecast to grow at 36% annually over the next three years, it has a PEG ratio of 0.85x. It is a rare occasion to be able to pick up a tech company like PINS at such a discount.
Furthermore, the technical setup offers a compelling risk-reward opportunity. If PINS can move above the $32 level, it should stage a powerful breakout. Alternatively, below $31 and it may trade lower first.
Bottom Line
By exploring mid-cap technology companies, investors can uncover stock market gems, which have the potential to grow into behemoths. Additionally, they can be fantastic trading vehicles for those investors looking for more tactical trading opportunities as their high growth rates invite momentum traders.
Why Haven't You Looked at Zacks' Top Stocks?
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Media Contact
Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS. Over the last week, DDOG has been building out another convincing bull flag. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the last week, DDOG has been building out another convincing bull flag.
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Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS. Over the last week, DDOG has been building out another convincing bull flag.
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For Immediate Release Chicago, IL – November 22, 2023 – Today, Zacks Investment Ideas feature highlights Datadog DDOG, Duolingo DUOL and Pinterest PINS. Over the last week, DDOG has been building out another convincing bull flag. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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a2fa7816-3fc3-4745-9b4a-8971e5854e54
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717967.0
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2023-11-22 00:00:00 UTC
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3 Top Cybersecurity Stocks to Buy in November
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DDOG
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https://www.nasdaq.com/articles/3-top-cybersecurity-stocks-to-buy-in-november-0
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nan
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nan
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The global cybersecurity market is already worth hundreds of billions of dollars. But in our increasingly digital world, it's still a nascent industry in its earliest stages of growth.
With hundreds of promising publicly traded companies from which to choose today, here are three leading cybersecurity stocks worth buying right now.
Out of the doghouse and into your portfolio
Shares of Datadog (NASDAQ: DDOG) are up more than 50% year to date on the heels of its incredibly strong quarterly update earlier this month. The data analytics platform provider saw third-quarter revenue jump 25% year over year to $547.5 million, well above estimates for $524 million, while adjusted earnings of $0.45 per share crushed expectations for $0.34 per share.
That's great, of course, if you owned Datadog before. But why should you consider buying Datadog stock after its recent pop?
If management's comments surrounding business trends are any indication, the company's gains may just be the start of a much longer-term trend. For perspective, Datadog previously plunged back in August after management issued admittedly conservative forward guidance, citing trends of customers focusing on optimizing their cloud spending, rather than deploying additional workloads.
However, in their third-quarter 2023 update, management effectively raised that conservative outlook to levels well above their previously reduced ranges, citing "robust new logo bookings and a continued focus on solving our customers' DevSecOps [Development, Security, and Operations] pain points."
Put simply: Datadog is solving problems that make its value proposition so clear that hordes of new customers are flocking to the platform. And I think Datastock has plenty of room to run from here as that momentum carries forward.
A fast-growing cybersecurity leader
Cloud security specialist Zscaler (NASDAQ: ZS) is growing even more quickly (pun intended!) at scale. Its fiscal fourth-quarter revenue (reported in September) was up 43% year over year to $455 million, and adjusted (non-GAAP) net income more than doubled to $0.64 per share. Both the top and bottom lines trounced Wall Street's expectations, which had called for earnings of $0.49 per share on revenue of $430 million.
How is Zscaler defying the trends that have dampened the growth of other cybersecurity names? For one, at its core, the company prioritizes innovation that goes above and beyond expectations to "delight" its customers. As such, according to Zscaler Chairman and CEO Jay Chaudhry, IT executives are increasingly prioritizing the implementation of Zscaler's "zero-trust architecture" -- that is, a system that assumes, by default, that no one is trusted, whether inside or outside of a network, requiring verification for all access requests. This modernizes their legacy network security systems.
Zscaler's retention rates reflect as much: Its dollar-based net retention rate (DBNRR) last quarter was an impressive 121%, meaning clients spent an average of 21% more on Zscaler's platform after their first year. The company is also enjoying momentum attracting large clients, ending last quarter with 449 customers (up 37% year over year) that each generate annual recurring revenue (ARR) of at least $1 million.
In today's high-interest-rate environment, where raising capital has grown increasingly challenging, it also helps that Zscaler is comfortably cash-flow positive. The company generated free cash flow of $101 million (or 22.3% of revenue) last quarter.
Zscaler exited last quarter with $2 billion in ARR -- a feat that took it only seven quarters to achieve after surpassing the $1 billion mark in 2021. Management now has their sights set on reaching $5 billion of ARR in the coming years, which is still only a small fraction of what the company estimates is already a $72 billion market opportunity.
For investors willing to buy now and hold as that growth story continues to play out, I think Zscaler will continue to stand tall as one of the market's most compelling cybersecurity stocks.
A (temporarily) troubled cybersecurity name
While I generally like to focus my attention on companies operating from positions of strength, I also think there's room to buy certain stocks during periods of temporary strife. Okta (NASDAQ: OKTA) is one such name. Its shares are down around 20% from their October highs as investors have been worrying about a recent cybersecurity breach.
More specifically, shares of Okta have tumbled over the past several weeks, following a report that hackers had stolen access tokens from the company's customer support case management system. Okta, for its part, wrote in its security blog that the incident involved a "threat actor" using the saved username and password of an employee's personal Google profile stored in the Chrome browser of an Okta-managed laptop to gain access to files associated with 134 Okta customers. For perspective, that's less than 1% of the company's total customer base.
Within that total, Okta says the threat actor could only use the session tokens to hijack sessions of five customers, three of whom have already shared their responses to the event. Okta has already released new security token binding features to prevent similar future breaches.
Still, as a longtime leader in zero trust architectures and user authentication, this isn't the first time (nor will it be the last) Okta has been the subject of a cybersecurity breach. It's admittedly not a great look for the company, and several analysts subsequently chimed in with words of caution ahead of its fiscal third-quarter update, scheduled for release on Nov. 29, 2023.
In the end, however, I'd be shocked if this isolated incident had any actual financial repercussions. And I think the market's knee-jerk reaction is a buying opportunity for patient, long-term investors willing to bet on Okta's continued industry leadership.
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Steve Symington has positions in Datadog. The Motley Fool has positions in and recommends Datadog, Okta, and Zscaler. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Out of the doghouse and into your portfolio Shares of Datadog (NASDAQ: DDOG) are up more than 50% year to date on the heels of its incredibly strong quarterly update earlier this month. For perspective, Datadog previously plunged back in August after management issued admittedly conservative forward guidance, citing trends of customers focusing on optimizing their cloud spending, rather than deploying additional workloads. However, in their third-quarter 2023 update, management effectively raised that conservative outlook to levels well above their previously reduced ranges, citing "robust new logo bookings and a continued focus on solving our customers' DevSecOps [Development, Security, and Operations] pain points."
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Out of the doghouse and into your portfolio Shares of Datadog (NASDAQ: DDOG) are up more than 50% year to date on the heels of its incredibly strong quarterly update earlier this month. The data analytics platform provider saw third-quarter revenue jump 25% year over year to $547.5 million, well above estimates for $524 million, while adjusted earnings of $0.45 per share crushed expectations for $0.34 per share. For perspective, Datadog previously plunged back in August after management issued admittedly conservative forward guidance, citing trends of customers focusing on optimizing their cloud spending, rather than deploying additional workloads.
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Out of the doghouse and into your portfolio Shares of Datadog (NASDAQ: DDOG) are up more than 50% year to date on the heels of its incredibly strong quarterly update earlier this month. The data analytics platform provider saw third-quarter revenue jump 25% year over year to $547.5 million, well above estimates for $524 million, while adjusted earnings of $0.45 per share crushed expectations for $0.34 per share. The company is also enjoying momentum attracting large clients, ending last quarter with 449 customers (up 37% year over year) that each generate annual recurring revenue (ARR) of at least $1 million.
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Out of the doghouse and into your portfolio Shares of Datadog (NASDAQ: DDOG) are up more than 50% year to date on the heels of its incredibly strong quarterly update earlier this month. But why should you consider buying Datadog stock after its recent pop? Okta (NASDAQ: OKTA) is one such name.
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68ae028f-99b5-4f89-b7c7-8a0c302f64ae
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717968.0
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2023-11-21 00:00:00 UTC
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Momentum Masters: 3 Mid-Cap Tech Stocks Investors can Buy Now
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DDOG
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https://www.nasdaq.com/articles/momentum-masters%3A-3-mid-cap-tech-stocks-investors-can-buy-now
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nan
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nan
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In a stock market that refuses to go down, mid-cap technology stocks offer some of the most compelling return opportunities available to investors. These companies are bringing unique and innovative solutions to their markets, enjoy tremendous growth rates, and have the potential to become truly revolutionary companies.
These stocks present opportunities for long-term investments based on value-creating solutions and promising business models as well as short-term trading opportunities driven by powerful momentum driving these stocks higher.
In this article, I will share three such stocks that enjoy considerable price momentum and top Zacks Ranks.
Image Source: Zacks Investment Research
Datadog
Datadog DDOG is a US-based software company that offers a cloud-based monitoring and analytics platform. The platform allows organizations to gain real-time visibility into the performance of their applications and infrastructure. Datadog's solutions collect, analyze, and visualize data from various sources, helping IT and development teams monitor and optimize the performance, security, and reliability of their digital operations.
Datadog has experienced some significant revisions higher to its earnings estimates, giving it a Zacks Rank #2 (Buy) rating. Current quarter earnings estimates have increased by 26.5% and are projected to climb 65.4% YoY to $0.43 per share.
FY23 earnings have been upgraded by 14.4% and are forecast to grow 54.1% YoY to $1.51 per share. FY23 sales are expected to show a 25.7% YoY increase to $2.11 billion.
Image Source: Zacks Investment Research
Since its massive earnings beat, and gap up, Datadog stock has been on fire, trading from one breakout to the next. Over the last week, DDOG has been building out another convincing bull flag. If the price can trade above the $112 level, it would signal a breakout and likely continue to new yearly highs.
On the flip side, if the stock loses support at $108.70, the setup is invalidated, and investors may want to wait for another opportunity.
Image Source: TradingView
Duolingo
Duolingo DUOL is the world's most popular language learning app with over 13 million active users. It is an educational technology company that creates learning apps and language certifications. Duolingo offers courses to learn over 40 different languages as well as courses on music and math. DUOL went public in June 2021.
Earnings estimates for Duolingo have snapped higher over the last week giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings estimates have increased from -$0.02 to $0.16 and FY23 from -$0.07 to $0.25.
It is a huge development to see the company flip to net profitable and should draw a steady stream of new investors.
Image Source: Zacks Investment Research
DUOL too has a compelling technical momentum trade setup. Over the last two weeks, the price has been forming a bull flag, which could propel the stock significantly higher. If DUOL can trade above $218.50, it would confirm a technical breakout. However, below $203.75 and the setup breaks down, and should be avoided.
Image Source: TradingView
Pinterest
Pinterest PINS is a social media and visual discovery platform. It allows users to discover and save ideas for various interests, including home decor, fashion, recipes, travel, and more, by creating digital collections known as "boards." Users can explore and share images and content they find inspiring or interesting. Pinterest serves as a platform for both personal inspiration and business promotion, with many businesses and content creators using it to reach and engage with their target audiences through visual content. PINS has 482 million monthly active users and generates revenue through ad sales.
Analysts have unanimously upgraded Pinterest’s earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings are expected to grow 72.4% YoY and FY23 are projected to climb 69.4% YoY.
Image Source: Zacks Investment Research
Based on these revised earnings estimates, Pinterest stock is trading like a value investment. With a forward earnings multiple of 30.5x, and EPS forecast to grow at 36% annually over the next three years, it has a PEG ratio of 0.85x. It is a rare occasion to be able to pick up a tech company like PINS at such a discount.
Furthermore, the technical setup offers a compelling risk-reward opportunity. If PINS can move above the $32 level, it should stage a powerful breakout. Alternatively, below $31 and it may trade lower first.
Image Source: TradingView
Bottom Line
By exploring mid-cap technology companies, investors can uncover stock market gems, which have the potential to grow into behemoths. Additionally, they can be fantastic trading vehicles for those investors looking for more tactical trading opportunities as their high growth rates invite momentum traders.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Datadog Datadog DDOG is a US-based software company that offers a cloud-based monitoring and analytics platform. Over the last week, DDOG has been building out another convincing bull flag. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog Datadog DDOG is a US-based software company that offers a cloud-based monitoring and analytics platform. Over the last week, DDOG has been building out another convincing bull flag.
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Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog Datadog DDOG is a US-based software company that offers a cloud-based monitoring and analytics platform. Over the last week, DDOG has been building out another convincing bull flag.
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Image Source: Zacks Investment Research Datadog Datadog DDOG is a US-based software company that offers a cloud-based monitoring and analytics platform. Over the last week, DDOG has been building out another convincing bull flag. Click to get this free report Pinterest, Inc. (PINS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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5e5c8e64-3ae7-46ae-8e49-70cabc86050c
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717969.0
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2023-11-21 00:00:00 UTC
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Datadog (DDOG) is a Great Momentum Stock: Should You Buy?
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-is-a-great-momentum-stock%3A-should-you-buy
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nan
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nan
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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Datadog currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For DDOG, shares are up 5.68% over the past week while the Zacks Internet - Software industry is up 3.85% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 30.45% compares favorably with the industry's 6.62% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Datadog have increased 20.78% over the past quarter, and have gained 52.38% in the last year. In comparison, the S&P 500 has only moved 4.49% and 16.43%, respectively.
Investors should also pay attention to DDOG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. DDOG is currently averaging 6,292,459 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with DDOG.
Over the past two months, 13 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DDOG's consensus estimate, increasing from $1.32 to $1.51 in the past 60 days. Looking at the next fiscal year, 13 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that DDOG is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Datadog on your short list.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick. For DDOG, shares are up 5.68% over the past week while the Zacks Internet - Software industry is up 3.85% over the same time period.
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Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick. For DDOG, shares are up 5.68% over the past week while the Zacks Internet - Software industry is up 3.85% over the same time period.
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Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick. For DDOG, shares are up 5.68% over the past week while the Zacks Internet - Software industry is up 3.85% over the same time period.
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DDOG is currently averaging 6,292,459 shares for the last 20 days. Below, we take a look at Datadog (DDOG), a company that currently holds a Momentum Style Score of A. Let's discuss some of the components of the Momentum Style Score for DDOG that show why this data analytics and cloud monitoring company shows promise as a solid momentum pick.
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ba6a3d06-4e34-4aa0-90ad-f62bf017e47a
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717970.0
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2023-11-21 00:00:00 UTC
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DDOG Quantitative Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-quantitative-stock-analysis-5
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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32b2e715-d51e-4d48-80c5-5a9ab0879174
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717971.0
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2023-11-20 00:00:00 UTC
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Intel and Dollar General have been highlighted as Zacks Bull and Bear of the Day
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DDOG
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https://www.nasdaq.com/articles/intel-and-dollar-general-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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For Immediate Release
Chicago, IL – November 20, 2023 – Zacks Equity Research shares Intel INTC as the Bull of the Day and Dollar General DG as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA, Intel Corp. INTC and Datadog, Inc. DDOG.
Here is a synopsis of all five stocks:
Bull of the Day:
Intel is one of the world's largest semiconductor companies and a primary supplier of microprocessors and chipsets. The company is gradually moving into data-centric businesses such as AI and autonomous driving.
The stock currently sports the highly-coveted Zacks Rank #1 (Strong Buy), with analysts bullishly revising their earnings expectations higher across the board.
In addition to favorable earnings estimate revisions, the company resides within the Zacks Semiconductor – General industry, currently ranked in the top 16% of all Zacks industries. Let's take a deeper look at the company.
Intel
Intel shares have enjoyed notably strong price action year-to-date, up 70% and widely outperforming the general market. Shares melted higher following its latest quarterly release, with investors pleased with the better-than-expected results.
Regarding headline figures, Intel exceeded the Zacks Consensus EPS Estimate by 95% and posted revenue nearly 5% ahead of expectations, reflecting the third consecutive quarter of exceeding consensus earnings and sales expectations.
The company's top line has begun to show consistent sequential growth following declines throughout 2022.
Many are optimistic about the company's future trajectory. Mizuho Securities recently upgraded Intel shares to a Buy from Neutral while also increasing its price target from $37 to $50 per share, implying an upside of roughly 14% from current levels. Excitement surrounding new AI chips has brightened Intel's outlook in a big way.
Insiders appear to be optimistic as well; CEO of Intel, Patrick Gelsinger, recently made a big splash, acquiring roughly 6800 shares at a total transaction value of $300k. Another director dove in after the CEO, acquiring a whopping total of 66k shares at a total transaction value of $2.5 million.
Concerning the valuation picture, INTC shares presently trade at a 3.4X forward price-to-sales ratio (F1), above the 2.9X five-year median but well beneath the Zacks Semiconductor – General industry average of 10.1X.
The company witnessed a notable growth slowdown amid the slump in PC shipments over the last several years, as illustrated below.
Earnings are forecasted to pull back 50% in its current year on 15% lower revenues before returning to growth next year, with FY24 consensus estimates presently suggesting 100% earnings growth on 14% higher sales.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Intel would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Dollar General, a current Zacks Rank #5 (Strong Sell), is a discount retailer in the United States offering a wide selection of merchandise, consumable items, seasonal items, home products, and apparel.
Analysts have taken a bearish stance on the company's earnings outlook, with expectations decreasing across all timeframes over the last several months.
What's going on with Dollar General? Let's take a closer look.
Dollar General
Dollar General shares have suffered in 2023, cut in half and widely underperforming relative to the general market. The company's latest two sets of quarterly results soured the opinions of investors, seeing notable selling pressure post-earnings.
Nonetheless, shares are up 17% since their October low, perhaps reflecting a turn-around in current sentiment among market participants. Still, waiting until positive earnings estimate revisions roll in will be worthwhile, which would fully support positive price action.
The reasoning behind DG's poor share performance is primarily centered around crunched profitability and weaker revenue growth trends relative to prior periods. In fact, Same-store sales decreased 0.1% year-over-year in its latest quarterly release, with a decline in customer traffic as the primary driving factor.
In addition, the company's gross profit margin declined from 32.3% to 31.1%, with operating profit also decreasing 25% from the year-ago period. The unfavorable results caused DG to trim its current year (FY23) outlook, now expecting net sales growth in a band of 1.3% - 3.3% compared to 3.5% - 5.0% previously.
Despite the current unfavorable outlook, the company's shareholder-friendly nature certainly shouldn't be overlooked. Dollar General has boosted its dividend payout five times over the last five years, translating to a 17% five-year annualized dividend growth rate.
Shares are currently yielding 2.0% annually.
Keep an eye out for the company's upcoming quarterly release on December 7th, as the Zacks Consensus EPS Estimate of $1.23 has been taken 46% lower since the end of August and reflects a decrease of 47% from the same period last year.
Bottom Line
Negative earnings estimate revisions from analysts and crunched profitability paint a challenging picture for the company's shares in the near term.
Dollar General is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
GenAI Boom-Led Chip Demand to Aid NVIDIA's Q3 Earnings
NVIDIA Corp. is slated to report third-quarter fiscal 2024 results on Nov 21.
NVIDIA's third-quarter fiscal 2024 performance is likely to reflect the continued strength of its Datacenter business. The Datacenter end-market business is likely to have mostly benefited from the growing demand for generative artificial intelligence (AI) and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
The company's second-quarter fiscal 2024 performance reflected record revenues across its data center end market, which mainly benefited from growing investments in generative AI. In the last reported quarter, its revenues from the Datacenter business jumped 171% year over year and 141% sequentially.
We believe that the trend is likely to have continued in the to-be-reported quarter. Our third-quarter revenue estimate for the data center end market is pegged at $12.5 billion, implying year-over-year growth of 226% and a sequential increase of 21%.
GenAI Boom to Drive the Top Line
Though AI has been around for years, the meteoric rise of OpenAI's ChatGPT has captivated the world's attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $667.96 billion by 2030, according to a new report by Fortune Business Insights. The market is expected to expand at a CAGR of 47.5% from 2023 to 2030.
The adoption of ChatGPT among enterprises has already proven generative AI technology's usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA's next-generation chips with high computing power can be the top choice for enterprises. During the first-quarter fiscal 2024earnings conference call the company's CEO, Jensen Huang, already stated that existing data centers are insufficiently equipped to handle growing AI workloads.
NVIDIA's GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. NVIDIA expects its third-quarter fiscal 2024 revenues to reach $16 billion from $5.93 billion in the year-ago quarter, largely driven by surging AI investments across the data center end market.
Zacks Rank & Other Stocks to Consider
NVIDIA currently sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have surged 239.5% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are Intel Corp. and Datadog, Inc.. Intel sports a Zacks Rank #1, while Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel's fourth-quarter 2023 earnings has been revised by 9 cents northward to 42 cents per share in the past 30 days. For 2023, earnings estimates have increased by 28 cents to 89 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being 136.3%. Shares of INTC have rallied 63.7% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has been revised upward by 9 cents to 35 cents per share in the past 30 days. For 2023, earnings estimates have increased by 19 cents to $1.51 per share in the past 30 days.
DDOG's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of Datadog have soared 48.5% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks Investment Research
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA, Intel Corp. INTC and Datadog, Inc. DDOG. DDOG's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA, Intel Corp. INTC and Datadog, Inc. DDOG. DDOG's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA, Intel Corp. INTC and Datadog, Inc. DDOG. DDOG's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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In addition, Zacks Equity Research provides analysis on NVIDIA Corp. NVDA, Intel Corp. INTC and Datadog, Inc. DDOG. DDOG's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Dollar General Corporation (DG) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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7d9a39c4-1785-498c-9759-08e7a212e6d2
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717972.0
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2023-11-20 00:00:00 UTC
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Tyler (TYL) Helps DeKalb County Transition to SaaS Deployment
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DDOG
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https://www.nasdaq.com/articles/tyler-tyl-helps-dekalb-county-transition-to-saas-deployment
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nan
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nan
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Tyler Technologies TYL revealed that DeKalb County, a suburb of Atlanta, GA, has successfully transitioned to Tyler’s software-as-a-service (SaaS) installation from an on-premise installation. The company stated that its newly deployed SaaS-based products are powered by Amazon Web Services.
With this transition, DeKalb County has become Tyler’s largest-ever court client that has migrated from an on-premise hosting environment to a cloud environment. The county is one of the long-standing clients for the company and has deployed multiple products, including Enterprise Justice suite, Enterprise Corrections and pretrial services.
Additionally, DeKalb County has deployed court modules, including Electronic Notices, Electronic Signatures and batch scanning, as well as Records Management, eFileGA and re:SearchGA.
Debra DeBerry, DeKalb County Clerk of Superior Court, believes that SaaS deployment will provide better stability, flexibility and cost effectiveness over time. The new installation will remove the expenses as well as the manpower necessary for managing servers and required hardware. This, in turn, will save money over time as well as lessen the burden on IT staff.
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. TYL has been consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements.
Shares of Tyler have outperformed the Zacks Business – Software Services industry in the year-to-date (YTD) period. TYL’s shares have rallied 27.6% YTD compared with the industry’s 19.5% growth.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Broadening Portfolio Through Acquisitions
TYL has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. In August 2023, the company completed the acquisition of Orlando, FL-headquartered Computing System Innovations, LLC (“CSI”) to enhance its electronic filing and redaction solutions.
Tyler intends to integrate CSI’s artificial intelligence (AI)-driven redaction and indexing solution — Intellidact Platform — into its eFile & Serve solution portfolio to automate data entry and document processing options for its clientele. It is also likely to leverage CSI’s AI and automation solution across its other verticals like Municipal & Schools, Property & Recording and Platform Solutions.
In March 2023, TYL revealed that it acquired Safeground Analytics — a Massachusetts-based analytics company offering exemplary real estate appraisals and assessments for states, counties and municipalities.
With this buyout, the company intends to accelerate its appraisal service businesses by bringing a team of experienced appraisers, analysts, statisticians, economists, computer scientists and assessors from Safeground Analytics. The analytics company will provide TYL with residential and commercial reassessments and deliver litigation support, expert witness testimony solutions for property appraisal matters, and auditing and monitoring services.
However, Tyler’s near-term growth prospects are likely to be affected by a delay in procurement process and lengthy sales cycle amid ongoing macroeconomic uncertainties. Also, many customers are expected to face budget pressures in the near term.
Additionally, high investments in R&D initiatives are likely to hurt margins. Intensifying competition from the likes of Oracle, SAP and Workday might keep Tyler’s pricing under pressure and negatively impact its gross margin.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. While both Intel and Aspen currently sport a Zacks Rank #1 (Strong Buy), Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved north 10 cents to 42 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 30 cents to 91 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 136.3%. Shares of INTC have rallied 65.7% year to date.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 10.6% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Shares of Datadog have rallied 49% year to date.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%.
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Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Tyler Technologies, Inc. (TYL) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-11-20 00:00:00 UTC
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Forget Nvidia: These 2 Artificial Intelligence (AI) Stocks Are Better Buys for 2024 and Beyond
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DDOG
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https://www.nasdaq.com/articles/forget-nvidia%3A-these-2-artificial-intelligence-ai-stocks-are-better-buys-for-2024-and
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Look, I know it's hard to set Nvidia aside when discussing artificial intelligence (AI). Its stock has surged 241% this year, catapulting the company to a $1.2 trillion valuation almost entirely on sales of its AI data center chips alone.
But here's the thing. Cathie Wood, who leads Ark Investment Management, says for every $1 in semiconductor hardware Nvidia sells, AI software companies are going to generate $8 in revenue. It makes sense because software scales far better than hardware; it can be developed once and sold an unlimited number of times.
With that in mind, here are two stocks that might be better buys than Nvidia in 2024.
Image source: Getty Images.
1. Datadog
Datadog (NASDAQ: DDOG) has become an essential tool for its 26,800 business customers. Its platform is designed to monitor cloud infrastructure, sales channels, and digital applications in order to eliminate the blind spots that come with operating in an online world.
For example, Datadog can alert a retail business to a technical fault in its website before it impacts the customer experience. Similarly, Sony's PlayStation Network uses Datadog to link its three major operating hubs in Tokyo, San Diego, and San Francisco to unify monitoring and incident response. That company says it can now identify and resolve issues for its 94 million gamers faster than ever before.
Datadog customers across several other industries like financial services, manufacturing, and healthcare have similar positive stories to tell.
However the company has now entered the world of artificial intelligence, and its services are rapidly expanding. In August, Datadog launched an observability tool specifically for developers of large language models (LLMs), which power generative AI applications. It will help identify performance degradation, drift, and hallucinations, all of which can make an LLM less accurate than intended, impacting the quality of the customer-facing application.
It integrates with leading infrastructure and compute platforms like Nvidia, Amazon Web Services, and Microsoft Azure to help developers deploy their models with confidence.
But that's not all, because Datadog recently launched an AI chatbot called Bits AI, which is designed to serve as a hyperintelligent assistant across its platforms. Users can converse with the chatbot using natural language instead of programming language, which could drastically speed up incident response. In fact, Bits AI can integrate into collaboration applications like Salesforce's Slack, delivering incident summaries to team members to accelerate every process, from investigation to resolution.
As of the third quarter of 2023 (ended Sept. 30), Datadog had $2 billion in annual recurring revenue. The company's CEO, Oliver Pomel, said 2.5% of that was attributable to AI. That might sound like a small number, but considering the technology has only attracted mainstream attention this year, it has likely scaled up very quickly -- and will probably continue to do so.
Datadog stock is trading 43% below its all-time high, so now might be a great chance for investors to buy in ahead of the new year.
2. Lemonade
Lemonade (NYSE: LMND) is in a slightly different position than Datadog. It has developed a portfolio of AI software applications, but it doesn't sell them to other businesses. Instead, it has used them to become one of the world's first AI-driven insurance companies, offering policies to consumers in the homeowners, renters, life, pet, and car insurance categories.
Lemonade's AI chatbot, Maya, is capable of writing a quote for a potential customer in under 90 seconds. For existing policyholders, the company's "AI Jim" can pay out claims in under three minutes. It's a paradigm shift for an age-old industry that has often been a source of frustration for consumers, particularly when it comes to the claims process, which can be slow and stressful. Having solved that problem, it's no surprise Lemonade has amassed 2 million customers since launching in 2016.
But Lemonade's use of AI runs much deeper than the customer experience. Last year, the company introduced its Lifetime Value 6 (LTV6) model, which is capable of predicting the likelihood of a customer making a claim, the likelihood of them switching insurers, and whether they would buy more than one policy. That data is used to calculate the lifetime value of the customer to price their premiums as accurately as possible.
Lemonade has since launched LTV7, LTV8, and it will soon be using LTV9, with each iteration more accurate than the last.
In the third quarter of 2023 (ended Sept. 30), Lemonade's in-force premium hit a record high of $719 million. The company's gross loss ratio also came down to 83% from 94% in the year-ago period, thanks to the growing accuracy of its AI models and some of its insurance segments gradually achieving scale.
Revenue also hit a quarterly record of $114 million, which was an impressive 54% increase compared to the same period last year.
Unfortunately, since Lemonade is still in its growth phase, its bottom line remained in the red. The company lost $40.2 million during Q3, but that was a 38% improvement from the year-ago quarter. Plus, management expects Lemonade to be cash-flow-positive by 2025, without requiring any further capital injections. That means investors are unlikely to suffer dilution going forward.
Lemonade is an exciting growth story and it's tackling a seismic financial opportunity; the car insurance industry in the U.S. alone was worth a whopping $348 billion last year. As a result, Lemonade stock could have as much upside as any other in the emerging AI industry going into the new year and beyond.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 15, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Datadog, Lemonade, Microsoft, Nvidia, and Salesforce. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog Datadog (NASDAQ: DDOG) has become an essential tool for its 26,800 business customers. Cathie Wood, who leads Ark Investment Management, says for every $1 in semiconductor hardware Nvidia sells, AI software companies are going to generate $8 in revenue. Its platform is designed to monitor cloud infrastructure, sales channels, and digital applications in order to eliminate the blind spots that come with operating in an online world.
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Datadog Datadog (NASDAQ: DDOG) has become an essential tool for its 26,800 business customers. Cathie Wood, who leads Ark Investment Management, says for every $1 in semiconductor hardware Nvidia sells, AI software companies are going to generate $8 in revenue. In the third quarter of 2023 (ended Sept. 30), Lemonade's in-force premium hit a record high of $719 million.
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Datadog Datadog (NASDAQ: DDOG) has become an essential tool for its 26,800 business customers. But that's not all, because Datadog recently launched an AI chatbot called Bits AI, which is designed to serve as a hyperintelligent assistant across its platforms. Last year, the company introduced its Lifetime Value 6 (LTV6) model, which is capable of predicting the likelihood of a customer making a claim, the likelihood of them switching insurers, and whether they would buy more than one policy.
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Datadog Datadog (NASDAQ: DDOG) has become an essential tool for its 26,800 business customers. Last year, the company introduced its Lifetime Value 6 (LTV6) model, which is capable of predicting the likelihood of a customer making a claim, the likelihood of them switching insurers, and whether they would buy more than one policy. Lemonade has since launched LTV7, LTV8, and it will soon be using LTV9, with each iteration more accurate than the last.
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2023-11-17 00:00:00 UTC
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GenAI Boom-Led Chip Demand to Aid NVIDIA's (NVDA) Q3 Earnings
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DDOG
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https://www.nasdaq.com/articles/genai-boom-led-chip-demand-to-aid-nvidias-nvda-q3-earnings
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NVIDIA Corporation NVDA is slated to report third-quarter fiscal 2024 results on Nov 21.
NVIDIA’s third-quarter fiscal 2024 performance is likely to reflect the continued strength of its Datacenter business. The Datacenter end-market business is likely to have mostly benefited from the growing demand for generative artificial intelligence (AI) and large language models using GPUs based on NVIDIA Hopper and Ampere architectures.
The company’s second-quarter fiscal 2024 performance reflected record revenues across its data center end market, which mainly benefited from growing investments in generative AI. In the last reported quarter, its revenues from the Datacenter business jumped 171% year over year and 141% sequentially.
We believe that the trend is likely to have continued in the to-be-reported quarter. Our third-quarter revenue estimate for the data center end market is pegged at $12.5 billion, implying year-over-year growth of 226% and a sequential increase of 21%.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
GenAI Boom to Drive the Top Line
Though AI has been around for years, the meteoric rise of OpenAI’s ChatGPT has captivated the world’s attention on the power of generative AI to augment human capability, suggesting that the AI boom may just get started.
Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $667.96 billion by 2030, according to a new report by Fortune Business Insights. The market is expected to expand at a CAGR of 47.5% from 2023 to 2030.
The adoption of ChatGPT among enterprises has already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. During the first-quarter fiscal 2024earnings conference call the company’s CEO, Jensen Huang, already stated that existing data centers are insufficiently equipped to handle growing AI workloads.
NVIDIA’s GPUs are already being applied in AI models, which is expanding its footprint in untapped markets like automotive, healthcare and manufacturing. The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. NVIDIA expects its third-quarter fiscal 2024 revenues to reach $16 billion from $5.93 billion in the year-ago quarter, largely driven by surging AI investments across the data center end market.
Zacks Rank & Other Stocks to Consider
NVIDIA currently sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have surged 239.5% year to date (YTD).
Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. Intel and Aspen each sport Zacks Rank #1, while Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has been revised by 9 cents northward to 42 cents per share in the past 30 days. For 2023, earnings estimates have increased by 28 cents to 89 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being 136.3%. Shares of INTC have rallied 63.7% year to date.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has been revised upward by 14 cents to $1.49 per share in the past 30 days. For fiscal 2024, earnings estimates have increased by 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being -32.3%. Shares of AZPN have declined 10.6% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has been revised upward by 9 cents to 35 cents per share in the past 30 days. For 2023, earnings estimates have increased by 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of Datadog have soared 48.5% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Some other top-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-11-16 00:00:00 UTC
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3 Top-Ranked Stocks to Buy for High Growth
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https://www.nasdaq.com/articles/3-top-ranked-stocks-to-buy-for-high-growth-0
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Growth investing has made a big comeback this year among investors, with many high-flying names enjoying positive price action throughout the period. Still, it’s critical to note that growth investing is commonly volatile by nature, perhaps steering away those with a more conservative approach.
The style is centered around targeting companies expected to grow their earnings and revenues at an above-average level, a development that commonly follows through to share outperformance.
For those interested in the growth investing style, three stocks – Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL – could all be considered.
On top of strong projected growth, all three sport a favorable Zacks Rank. Let’s take a closer look at each.
Datadog
Datadog is a monitoring and analytics platform for developers, IT operations teams, and business users in the cloud age. Analysts have taken their earnings expectations higher across the board, landing the stock into a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
The company’s latest quarterly results came in well above expectations, exceeding the Zacks Consensus EPS Estimate by more than 30% and posting a 4% revenue beat. Investors took the results in stride, with DDOG shares melting higher post-earnings.
Image Source: Zacks Investment Research
Concerning comparisons, revenue improved an impressive 25% from the year-ago quarter, continuing the company’s explosive growth characteristics. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Datadog’s earnings are forecasted to climb 54% in its current year (FY23) on 25% higher sales, with FY24 consensus expectations alluding to 12% earnings growth paired with a 21% sales increase.
Image Source: Zacks Investment Research
American Eagle Outfitters
American Eagle Outfitters is a specialty retailer of casual apparel, accessories, and footwear for men and women. The stock is a Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
Image Source: Zacks Investment Research
AEO’s growth profile has shifted positively amid a more favorable operating environment, with the Zacks Consensus Estimates for its current fiscal year suggesting 37% earnings growth on 2.5% higher sales. AEO recently posted strong quarterly results, exceeding earnings expectations by more than 60% and posting a 1.1% sales surprise.
In addition, investors stand to reap a passive income, with AEO shares presently yielding a solid 2.0% annually paired with a sustainable payout ratio sitting at 33% of its earnings. The current yield is above the respective average of the Zacks Retail – Apparel and Shoes industry.
Keep an eye out for the company’s upcoming release expected on November 21st. Currently, the Zacks Consensus EPS Estimate of $0.48 suggests 15% growth from the year-ago period, with analysts bullishly revising their expectations higher.
Image Source: Zacks Investment Research
Duolingo
Duolingo, a current Zacks Rank #1 (Strong Buy), provides a mobile language learning platform. The company’s earnings outlook has shot higher across the board.
Image Source: Zacks Investment Research
Duolingo’s latest quarterly print came in well above expectations, exceeding the Zacks Consensus EPS Estimate by a sizable 200% and revenue coming in 4.7% ahead of the consensus. Both items were well above year-ago figures, with shares also moving notably higher post-earnings.
The company's revenue growth has been impressive, further illustrated below.
Image Source: Zacks Investment Research
And the company boasts the most impressive growth trajectory of the bunch, with current Zacks Consensus Estimates suggesting 150% earnings growth in its current year paired with a 42% sales increase. Peeking ahead of FY24, estimates call for 220% earnings growth paired with a 30% sales bump.
Bottom Line
Growth investors have every reason to be happy in 2023, with a much-needed shift in sentiment helping drive many growth-related stocks higher. The Fed dampened the mood in 2022 amid its historic tightening campaign, particularly as the cost of capital increased.
Nonetheless, they’ve jumped back into favor this year, with several, including Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL all seeing positive price action year-to-date.
In addition, all three sport a favorable Zacks Rank, reflecting optimism among analysts.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Duolingo, Inc. (DUOL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nonetheless, they’ve jumped back into favor this year, with several, including Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL all seeing positive price action year-to-date. For those interested in the growth investing style, three stocks – Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL – could all be considered. Investors took the results in stride, with DDOG shares melting higher post-earnings.
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Click to get this free report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Duolingo, Inc. (DUOL) : Free Stock Analysis Report To read this article on Zacks.com click here. For those interested in the growth investing style, three stocks – Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL – could all be considered. Investors took the results in stride, with DDOG shares melting higher post-earnings.
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For those interested in the growth investing style, three stocks – Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL – could all be considered. Investors took the results in stride, with DDOG shares melting higher post-earnings. Nonetheless, they’ve jumped back into favor this year, with several, including Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL all seeing positive price action year-to-date.
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For those interested in the growth investing style, three stocks – Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL – could all be considered. Investors took the results in stride, with DDOG shares melting higher post-earnings. Nonetheless, they’ve jumped back into favor this year, with several, including Datadog DDOG, American Eagle Outfitters AEO, and Duolingo DUOL all seeing positive price action year-to-date.
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2023-11-15 00:00:00 UTC
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Datadog Stock Soars 28% After Its Latest Announcement. Should You Still Buy the Stock?
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DDOG
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https://www.nasdaq.com/articles/datadog-stock-soars-28-after-its-latest-announcement.-should-you-still-buy-the-stock
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When a stock makes a large one-day jump, many investors wonder if they've already missed the boat or if it's just the beginning of something bigger. That's where many Datadog (NASDAQ: DDOG) watchers find themselves after the stock's monstrous 28% rise the day after it reported earnings.
So, is it too late? Or do investors still have a chance at picking up shares of Datadog for a reasonable price? Let's find out.
The stock's been on a roller-coaster ride lately
It's probably smart to understand the context behind Datadog's jump before digging into the reasons why it happened. The stock has had a tremendous year -- up 40%, including the jump after earnings. However, it reached its 2023 peak in August at $116 per share and subsequently slumped to around $90 following its Q2 earnings report. The stock moved lower, to $80 per share, right before Q3 earnings announcement, after which it shot up to more than $100 per share.
What caused the Q2 decline in the first place? Full-year guidance cuts and missing Q3 expectations. Wall Street wasn't pleased that Datadog projected only $523 million in Q3 when it expected $533 million. But when Q3 results came around and blew expectations out of the water, the stock was primed to return to its previous pedestal.
In Q3, Datadog reported revenue of $548 million, up 25% year over year. Additionally, it raised its full-year outlook to $2.105 billion from $2.055 billion. With Datadog reversing the issues that caused the sell-off in the first place, it shouldn't be that much of a surprise that the stock rebounded as aggressively as it did.
Datadog will likely continue to grow for some time, thanks to its industry focus. Its products are centered around one thing: observability. Datadog's products make it easy to see inside a computer system, which may have multiple data streams and software feeding into each other. It can be hard to diagnose when something is wrong until it's too late, but with Datadog's products, monitoring these feeds is easy.
One area seeing strong growth is artificial intelligence (AI). Generative AI requires massive data streams to inform the program properly and give it the most up-to-date information possible. Ensuring that these data flows are working is critical, and Datadog sees this as a large opportunity. According to management, about 2.5% of the company's annual recurring revenue comes from AI customers, but it expects this to expand as larger companies adopt this technology.
While Datadog may have flipped the script with its results and has a strong upside thanks to its industry exposure, is the stock a buy after a 28% jump?
Expensive stock, bright future
Datadog isn't consistently profitable and posted only a $22.6 million profit thanks to interest income from its cash pile. As a result, the most appropriate valuation measure is the price-to-sales (P/S) multiple, which allows investors to understand how much they pay for each dollar of sales from a historical perspective.
Clearly, the best time to buy Datadog was a couple of weeks ago as 17 times sales isn't cheap.
DDOG PS Ratio data by YCharts
With the stock approaching its 2023 P/S ratio highs, there's no doubt that buying Datadog's stock today is an expensive proposition. But with the upside in Datadog's business, I won't be surprised if investors look back five years from now and see this as a bargain.
Sometimes you have to pay up to own top companies, and anchoring to a previous price point can cause investors to miss some of the biggest winners. I think investors should be aware of that bias with Datadog stock and not hold back from buying Datadog shares because of it.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Keithen Drury has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's where many Datadog (NASDAQ: DDOG) watchers find themselves after the stock's monstrous 28% rise the day after it reported earnings. DDOG PS Ratio data by YCharts With the stock approaching its 2023 P/S ratio highs, there's no doubt that buying Datadog's stock today is an expensive proposition. Datadog's products make it easy to see inside a computer system, which may have multiple data streams and software feeding into each other.
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That's where many Datadog (NASDAQ: DDOG) watchers find themselves after the stock's monstrous 28% rise the day after it reported earnings. DDOG PS Ratio data by YCharts With the stock approaching its 2023 P/S ratio highs, there's no doubt that buying Datadog's stock today is an expensive proposition. In Q3, Datadog reported revenue of $548 million, up 25% year over year.
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DDOG PS Ratio data by YCharts With the stock approaching its 2023 P/S ratio highs, there's no doubt that buying Datadog's stock today is an expensive proposition. That's where many Datadog (NASDAQ: DDOG) watchers find themselves after the stock's monstrous 28% rise the day after it reported earnings. I think investors should be aware of that bias with Datadog stock and not hold back from buying Datadog shares because of it.
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That's where many Datadog (NASDAQ: DDOG) watchers find themselves after the stock's monstrous 28% rise the day after it reported earnings. DDOG PS Ratio data by YCharts With the stock approaching its 2023 P/S ratio highs, there's no doubt that buying Datadog's stock today is an expensive proposition. In Q3, Datadog reported revenue of $548 million, up 25% year over year.
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86afe86c-1b5f-406c-b467-310408f33a5f
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717977.0
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2023-11-14 00:00:00 UTC
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NVIDIA (NVDA) Introduces Most Powerful HGX H200 GPU Chip
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DDOG
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https://www.nasdaq.com/articles/nvidia-nvda-introduces-most-powerful-hgx-h200-gpu-chip
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nan
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nan
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NVIDIA NVDA recently unveiled its most powerful graphics processing unit (GPU), NVIDIA HGX H200. Based on its Hopper architecture, this newly introduced GPU chip will be able to manage extensive data volumes crucial for generative artificial intelligence (AI) and high-performance computing tasks.
The NVIDIA H200 builds upon its predecessor, the NVIDIA H100, which was launched in early 2022. The H200 represents a significant leap in large-scale AI and HPC workloads compared with the prior generation, as it is the first GPU to offer HBM3e. This technology doubles the H200’s bandwidth capacity, enabling it to deliver 141GB of memory at 4.8 terabytes per second.
The specifications of the H200 GPU include NVIDIA NVLink and NVSwitch high-speed interconnects, an eight-way HGX H200 and HBM3e. While NVLink and NVSwitch improve performance, the eight-way HGX H200 enhances high-bandwidth memory capabilities. Together, NVLink, HGX H200, HBM3e and the GH200 Grace Hopper Superchip provide a unified module designed for handling large-scale HPC and AI applications.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
The H200 GPUs are compatible with both the software and hardware of the current HGX H100 systems. The GPUs are adaptable to various configurations and suited for all kinds of data centers, such as on-premises, cloud-based, hybrid and edge setups. NVIDIA plans to roll out the H200 in the second quarter of 2024 through major manufacturers.
Industry leaders, including Amazon Web Services, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure, will lead the way in launching H200-based instances next year. NVIDIA's extensive network of partner server manufacturers, including ASUS, Dell Technologies, GIGABYTE, Hewlett Packard Enterprise, Lenovo, Supermicro and Wistron, will have the opportunity to upgrade their current systems with the H200.
NVDA is experiencing strong traction for its HGX platform from Data Centers, cloud service providers and major Internet companies like Google Cloud, Meta, Azure and Amazon Web Services, all adopting HGX systems based on Hopper and Ampere architecture Tensor core GPUs.
The company anticipates continued robust growth in this sector, primarily propelled by the artificial intelligence revolution, accelerated computing and the widespread upgrade of data centers.
Zacks Rank and Other Stocks to Consider
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy). Shares of NVDA have gained 232.7% year to date.
Some other top-ranked stocks from the broader technology sector are Datadog DDOG, NetEase NTES and Hewlett Packard HPE, each flaunting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has been revised upward by a penny to 35 cents per share in the past seven days. For 2023, earnings estimates have increased by 3 cents to $1.35 per share in the past seven days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of Datadog have declined 41.8% year to date.
The Zacks Consensus Estimate for NetEase's third-quarter 2023 earnings has been revised upward by 9 cents to $1.65 per share in the past 30 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same on one occasion, the average surprise being 24.54%. Shares of NTES have gained 58.5% year to date.
The Zacks Consensus Estimate for Hewlett Packard's fourth-quarter 2023 earnings has remained unchanged for the past 60 days at 50 cents per share. For fiscal 2023, earnings estimates have been revised a penny downward to $2.13 per share in the past 30 days.
HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.58%. Shares of HPE have inched up 0.3% year to date.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some other top-ranked stocks from the broader technology sector are Datadog DDOG, NetEase NTES and Hewlett Packard HPE, each flaunting a Zacks Rank #1 at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Datadog DDOG, NetEase NTES and Hewlett Packard HPE, each flaunting a Zacks Rank #1 at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks from the broader technology sector are Datadog DDOG, NetEase NTES and Hewlett Packard HPE, each flaunting a Zacks Rank #1 at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Some other top-ranked stocks from the broader technology sector are Datadog DDOG, NetEase NTES and Hewlett Packard HPE, each flaunting a Zacks Rank #1 at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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ef374921-7c64-47b7-8add-0dbb59f08089
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717978.0
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2023-11-14 00:00:00 UTC
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Is Salesforce (CRM) Outperforming Other Computer and Technology Stocks This Year?
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DDOG
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https://www.nasdaq.com/articles/is-salesforce-crm-outperforming-other-computer-and-technology-stocks-this-year
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nan
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nan
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Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is Salesforce.com (CRM) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Salesforce.com is a member of the Computer and Technology sector. This group includes 625 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Salesforce.com is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CRM's full-year earnings has moved 11.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CRM has gained about 62.4% so far this year. At the same time, Computer and Technology stocks have gained an average of 41.6%. As we can see, Salesforce.com is performing better than its sector in the calendar year.
Datadog (DDOG) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 41.8%.
The consensus estimate for Datadog's current year EPS has increased 280% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Salesforce.com belongs to the Computer - Software industry, a group that includes 37 individual companies and currently sits at #65 in the Zacks Industry Rank. Stocks in this group have gained about 50.4% so far this year, so CRM is performing better this group in terms of year-to-date returns.
On the other hand, Datadog belongs to the Internet - Software industry. This 147-stock industry is currently ranked #56. The industry has moved +49.9% year to date.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Salesforce.com and Datadog as they could maintain their solid performance.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Salesforce Inc. (CRM) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) is another Computer and Technology stock that has outperformed the sector so far this year. Click to get this free report Salesforce Inc. (CRM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past three months, the Zacks Consensus Estimate for CRM's full-year earnings has moved 11.3% higher.
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Click to get this free report Salesforce Inc. (CRM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is another Computer and Technology stock that has outperformed the sector so far this year. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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Click to get this free report Salesforce Inc. (CRM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG) is another Computer and Technology stock that has outperformed the sector so far this year. This group includes 625 individual stocks and currently holds a Zacks Sector Rank of #5.
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Datadog (DDOG) is another Computer and Technology stock that has outperformed the sector so far this year. Click to get this free report Salesforce Inc. (CRM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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d2d45d3d-ca04-482e-8d1b-a95386231435
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717979.0
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2023-11-14 00:00:00 UTC
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Micron (MU) Sued by China's YMTC for Patent Infringement
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DDOG
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https://www.nasdaq.com/articles/micron-mu-sued-by-chinas-ymtc-for-patent-infringement
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nan
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nan
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Micron Technology MU has been accused of patent infringement by the Chinese chipmaker, Yangtze Memory Technologies Company (“YMTC”). Partially state-owned, YMTC filed a lawsuit on Nov 9 at the U.S. District Court, alleging that the U.S. memory chipmaker has infringed eight of its patented technology, according to a report by Reuters.
In the lawsuit, Micron has been accused of the unauthorized use of the patented technology to fend off competition from YMTC and protect its market share. This is a fresh salvo to the U.S. chipmaker amid the growing trade war between the United States and China. Earlier in May 2023, the company was imposed a trade restriction by the Cyberspace Administration of China on selling its products in key domestic industries on national security concerns.
Micron Caught in Trade War Crossfire
The developments can be seen as a retaliatory action by the Chinese government against the U.S. government’s increasing restrictions on Chinese access to critical and more advanced semiconductor technology.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
Last year, YMTC was placed on the export blacklist by the U.S. government, restricting it from buying certain American components. In October 2022, the United States imposed an export ban on certain advanced chips that are used in data centers for artificial intelligence, data analytics and computing applications.
Just after a year, in October 2023, the U.S. government further expanded restrictions on exporting and selling advanced chips to China from certain American companies. Earlier this year, the Netherlands and Japan also joined the United States to restrict China from making advanced chips.
The tit-for-tat actions could jeopardize Micron’s prospects, which are already facing the brunt of the weak demand for its memory chips. Chip sales in China make up approximately 11% of Micron’s total revenues.
In late September, MU reported a non-GAAP loss of $1.07 per share for the fourth quarter of fiscal 2023, which compared unfavorably with the prior-year quarter’s earnings of $1.45 per share. The quarterly revenues of Micron plunged 39.6% year over year to $4.01 billion. Weak consumer demand and substantial customer inventory adjustments across end markets amid macroeconomic uncertainty were the main reasons behind the drastic year-over-year decline in the quarterly performance.
Zacks Rank & Stocks to Consider
Currently, Micron carries a Zacks Rank #3 (Hold). Shares of MU have rallied 49.6% year to date (YTD).
Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, NetEase, Inc. NTES and Datadog, Inc. DDOG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for NVDA’s third-quarter fiscal 2024 earnings has been revised by 2 cents northward to $3.34 per share in the past 60 days. For fiscal 2024, earnings estimates have increased by 7 cents to $10.74 in the past 60 days.
NVIDIA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being 9.8%. Shares of NVDA have rallied 232.7% year to date.
The Zacks Consensus Estimate for NetEase's third-quarter 2023 earnings has been revised upward by 9 cents to $1.65 per share in the past 30 days. For fiscal 2023, earnings estimates have increased by 42 cents to $6.96 per share in the past 30 days.
NTES' earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing on one occasion, the average surprise being 24.5%. Shares of NTES have rallied 58.5% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has been revised upward by a penny to 35 cents per share in the past seven days. For 2023, earnings estimates have increased by 3 cents to $1.35 per share in the past seven days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of Datadog have declined 41.8% year to date.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, NetEase, Inc. NTES and Datadog, Inc. DDOG, each sporting a Zacks Rank #1 (Strong Buy) at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, NetEase, Inc. NTES and Datadog, Inc. DDOG, each sporting a Zacks Rank #1 (Strong Buy) at present. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, NetEase, Inc. NTES and Datadog, Inc. DDOG, each sporting a Zacks Rank #1 (Strong Buy) at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%.
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Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, NetEase, Inc. NTES and Datadog, Inc. DDOG, each sporting a Zacks Rank #1 (Strong Buy) at present. DDOG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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94c5d670-c63d-4efb-8e2f-415144e66095
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717980.0
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2023-11-14 00:00:00 UTC
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This High-Growth Cloud Stock Crushed Earnings, and It Isn't Done Soaring Yet
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DDOG
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https://www.nasdaq.com/articles/this-high-growth-cloud-stock-crushed-earnings-and-it-isnt-done-soaring-yet
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nan
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nan
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Shares of Datadog (NASDAQ: DDOG) shot up 28% on Nov. 7 following the release of the company's third-quarter results, which crushed Wall Street's expectations. It looks like the cloud specialist could sustain its red-hot momentum going forward as well.
That's because Datadog raised its full-year outlook, suggesting that the demand for its cloud observability and security solutions remains strong. The company's latest results come as a huge reprieve for investors -- Datadog stock was clobbered in August, as the market wasn't satisfied with its guidance then.
Let's take a closer look at Datadog's Q3 performance and check why the stock is likely to head higher.
Datadog's solid results and guidance point toward healthy customer spending
Datadog's Q3 revenue increased 25% year over year to $547.5 million, which was well ahead of the $524 million Wall Street estimate. What's more, Datadog's non-GAAP earnings nearly doubled year over year to $0.45 per share, crushing the consensus estimate of $0.34 per share.
Datadog's guidance was the icing on the cake. The company expects Q4 revenue to land at $566 million at the midpoint of its guidance range, along with adjusted earnings of $0.43 per share. Both numbers are well ahead of analysts' estimates of $0.35 per share in earnings on revenue of $543 million. Even better, Datadog raised its full-year revenue guidance to a range of $2.10 billion to $2.11 billion from the earlier estimate of $2.05 billion to $2.06 billion.
The new guidance implies a year-over-year increase of 25%, but it won't be surprising to see Datadog delivering stronger growth thanks to the strong demand for its offerings and a massive addressable market. The company exited Q3 with 26,800 customers, an increase of 21% over the year-ago period. More importantly, it witnessed a stronger increase in the number of high-value customers.
The number of Datadog customers with an annualized recurring revenue (ARR) of more than $1 million increased 47% year over year to 317. Meanwhile, the number of customers with an ARR of $100,000 or more was up 20% year over year to 3,130. This improvement in customer spending can be attributed to the adoption of multiple Datadog products by its customers.
For instance, 46% of Datadog's customers were using four or more of its products in the third quarter, up from 40% in the same period last year. The number of customers using six or more products increased by 5 percentage points year over year to 21%. All this explains why Datadog's dollar-based net retention rate was slightly below 120% last quarter. This metric compares the ARR of Datadog's customers in a quarter to the ARR from that same set of customers in the year-ago period, so a reading of more than 100% means that they increased their spending.
Looking ahead, Datadog seems capable of sustaining its solid growth due to a couple of factors.
First, the company expects annual cloud spending to jump to $1 trillion in 2026, double 2022's estimated spending of $500 billion. This massive jump in global cloud spending means that the spending on cloud observability and security solutions that Datadog sells should increase as well.
This brings us to the second reason why Datadog is built for long-term growth -- a nice jump in the company's total addressable market. The company was sitting on a total addressable market worth $41 billion in 2022, which is expected to jump to $62 billion in 2026.
Faster growth could be in the cards
Datadog is set to sustain a high pace of growth in the coming years, with its 2025 revenue growth expected to be faster than 2024.
DDOG Revenue Estimates for Current Fiscal Year data by YCharts
Additionally, Datadog's earnings are expected to increase at an annual pace of 32% over the next five years. Assuming Datadog does clock such impressive growth, its earnings could jump to $7 per share in 2028 (using 2023's estimated earnings of $1.33 per share as the base). The stock is currently trading at an expensive 84 times forward earnings.
Assuming its forward earnings multiple comes down to 26 after five years, in line with the Nasdaq-100 index's forward earnings ratio, its stock price could jump to $182 after five years based on the projected earnings of $7 per share. That would be a 75% jump from current levels, which is why investors would do well to buy this growth stock before it soars higher.
10 stocks we like better than Datadog
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*Stock Advisor returns as of November 6, 2023
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Datadog (NASDAQ: DDOG) shot up 28% on Nov. 7 following the release of the company's third-quarter results, which crushed Wall Street's expectations. DDOG Revenue Estimates for Current Fiscal Year data by YCharts Additionally, Datadog's earnings are expected to increase at an annual pace of 32% over the next five years. The company's latest results come as a huge reprieve for investors -- Datadog stock was clobbered in August, as the market wasn't satisfied with its guidance then.
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Shares of Datadog (NASDAQ: DDOG) shot up 28% on Nov. 7 following the release of the company's third-quarter results, which crushed Wall Street's expectations. DDOG Revenue Estimates for Current Fiscal Year data by YCharts Additionally, Datadog's earnings are expected to increase at an annual pace of 32% over the next five years. Datadog's solid results and guidance point toward healthy customer spending Datadog's Q3 revenue increased 25% year over year to $547.5 million, which was well ahead of the $524 million Wall Street estimate.
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Shares of Datadog (NASDAQ: DDOG) shot up 28% on Nov. 7 following the release of the company's third-quarter results, which crushed Wall Street's expectations. DDOG Revenue Estimates for Current Fiscal Year data by YCharts Additionally, Datadog's earnings are expected to increase at an annual pace of 32% over the next five years. Datadog's solid results and guidance point toward healthy customer spending Datadog's Q3 revenue increased 25% year over year to $547.5 million, which was well ahead of the $524 million Wall Street estimate.
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Shares of Datadog (NASDAQ: DDOG) shot up 28% on Nov. 7 following the release of the company's third-quarter results, which crushed Wall Street's expectations. DDOG Revenue Estimates for Current Fiscal Year data by YCharts Additionally, Datadog's earnings are expected to increase at an annual pace of 32% over the next five years. Datadog's solid results and guidance point toward healthy customer spending Datadog's Q3 revenue increased 25% year over year to $547.5 million, which was well ahead of the $524 million Wall Street estimate.
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8240701c-4ca4-4618-bbed-79509c947cf0
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717981.0
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2023-11-12 00:00:00 UTC
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Is Datadog Stock a Buy?
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DDOG
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https://www.nasdaq.com/articles/is-datadog-stock-a-buy-1
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nan
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nan
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From online banking to streaming the latest shows, our society relies heavily on technology. Organizations depend so much on tech that these systems must run continuously without a hitch. Enter Datadog (NASDAQ: DDOG), a company specializing in monitoring tech infrastructure so issues are caught before they affect customers.
The importance of Datadog's products has grown as tech infrastructures become increasingly complex. Organizations now combine on-site computer networks, software tools, and other systems with cloud computing platforms operated by third parties. Datadog's monitoring capabilities can span these disparate systems, watching for signs of a technical issue and providing the tools to address problems quickly.
An indicator of how important Datadog's solutions have become to an organization is illustrated by a seven-figure deal the company secured with a U.S. government agency this year. Datadog's success resulted in a strong third-quarter earnings report, causing shares to surge nearly 30% on Nov. 7, the stock's best performance to date.
So, does it make sense to buy shares in Datadog? To answer that question, here's a look at the company to help assess whether Datadog is a good long-term investment.
Datadog's evolution
One factor contributing to Datadog's appeal as an investment is the company's ability to successfully evolve its business. Datadog began by offering monitoring services for tech infrastructure, but now, it's expanded into cybersecurity, artificial intelligence, and more.
The company's expansion into cybersecurity makes sense. A cyberattack would be one of the anomalies Datadog's monitoring can identify, so cybersecurity capabilities are a logical next step in the company's evolution.
Datadog's platform also incorporates artificial intelligence, although the use of AI by its customer base is developing since this area is ramping up. But this means AI products provide the potential for years of continued revenue growth as AI adoption rises.
Datadog's expansion efforts, coupled with a focus on supporting the rapid adoption of cloud computing infrastructure by businesses, fueled the company's revenue growth. In its third-quarter results, Datadog's revenue reached $547.5 million, representing 25% year-over-year growth. This is just the latest in a trend of continuously rising revenue, a testament to its success in growing its business.
Data by YCharts.
Datadog's financials
The company's revenue growth is expected to continue. Datadog forecasts 2023 revenue to reach $2.1 billion, a double-digit increase over 2022's $1.7 billion.
Along with rising revenue, the company possesses a solid balance sheet. Datadog exited Q3 with total assets of $3.5 billion, with $2.1 billion of that in marketable securities. Total liabilities were $1.7 billion.
Another sign of strong financials is Datadog's trend of free cash flow (FCF) growth. The company reached an FCF of $396.3 million through three quarters, which already exceeds 2022's full-year total of $353.5 million.
Moreover, the company was profitable in Q3, with a net income of $22.6 million. However, it's worth noting after three quarters, Datadog is at a net loss of $5.4 million. That's still a substantial improvement over the prior year's net loss of $21.1 million through three quarters.
As CFO David Obstler explained, "We've always been looking at the balance between maximizing the top-line growth with producing profit and are going to continue to operate on that, taking advantage of the long-term opportunities." So, investors should expect the company's net income to vacillate depending on company investments in any given quarter.
To buy or not to buy Datadog stock
Customer adoption metrics indicate the strength of Datadog's offerings. The company grew its customer base from around 22,000 in 2022 to 26,800 at the end of Q3. In addition, over 80% of clients were using two or more Datadog products, and nearly half used four or more in Q3. Customers using multiple Datadog products not only attest to the popularity of the company's offerings but also mean more revenue for Datadog.
The company generates sales through a software-as-a-service (SaaS) model where customers subscribe to Datadog's services. This allows the company to generate predictable recurring revenue.
These factors, along with rising revenue and financial strength, illustrate Datadog's success in growing its business. These are positive signs of Datadog's ability to continue growing over the long run, making Datadog shares a worthwhile investment.
10 stocks we like better than Datadog
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Robert Izquierdo has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Enter Datadog (NASDAQ: DDOG), a company specializing in monitoring tech infrastructure so issues are caught before they affect customers. Datadog's monitoring capabilities can span these disparate systems, watching for signs of a technical issue and providing the tools to address problems quickly. Datadog's expansion efforts, coupled with a focus on supporting the rapid adoption of cloud computing infrastructure by businesses, fueled the company's revenue growth.
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Enter Datadog (NASDAQ: DDOG), a company specializing in monitoring tech infrastructure so issues are caught before they affect customers. But this means AI products provide the potential for years of continued revenue growth as AI adoption rises. These factors, along with rising revenue and financial strength, illustrate Datadog's success in growing its business.
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Enter Datadog (NASDAQ: DDOG), a company specializing in monitoring tech infrastructure so issues are caught before they affect customers. Datadog's evolution One factor contributing to Datadog's appeal as an investment is the company's ability to successfully evolve its business. To buy or not to buy Datadog stock Customer adoption metrics indicate the strength of Datadog's offerings.
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Enter Datadog (NASDAQ: DDOG), a company specializing in monitoring tech infrastructure so issues are caught before they affect customers. Datadog began by offering monitoring services for tech infrastructure, but now, it's expanded into cybersecurity, artificial intelligence, and more. This is just the latest in a trend of continuously rising revenue, a testament to its success in growing its business.
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475f62ce-3d5b-4695-b4d0-3d15babeca02
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717982.0
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2023-11-10 00:00:00 UTC
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4 Key Metrics for Datadog Bulls and 1 for the Bears
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DDOG
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https://www.nasdaq.com/articles/4-key-metrics-for-datadog-bulls-and-1-for-the-bears
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nan
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nan
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Since reporting its third-quarter results on Tuesday, shares of cloud monitoring and analytics company Datadog (NASDAQ: DDOG) have surged about 25%. Investors clearly love what the company had to say in its quarterly update.
Investors cheered Datadog's strong revenue growth, improving profitability, and robust fourth-quarter outlook.
"Companies across all industries and sizes are building cloud applications and services to deliver positive business outcomes, including more users, higher revenue growth, improved productivity, and cost savings," said Datadog CEO Olivier Pomel in the company's third-quarter earnings release. "With our unified, cloud-native, end-to-end observability and security platform, Datadog is uniquely positioned to help our customers reach their goals."
While there's certainly plenty of reason to be upbeat about the company, there are also some reasons to be critical. Here are four key metrics from the quarter to better understand the company's recent success and one more pessimistic metric that could suggest the stock's recent hype is overdone.
Strong sales growth
Though Datadog's revenue growth was strong in Q2, coming in at a year-over-year growth rate of 25%, it was notably a deceleration from 33% revenue growth in Q1 and 63% for the full year of 2022. Some investors, therefore, may have been worried that Datadog's revenue growth would decelerate again in Q3. But it didn't happen. Instead, the growth rate stabilized, with third-quarter revenue rising 25% year over year again, coming in at $547.5 million.
Improving profitability
Strong revenue growth, combined with the company's increased efforts to improve efficiency and reduce costs, led to improving profitability in Q3. This is particularly evident in the company's non-GAAP (generally accepted accounting principles) operating income as a percentage of revenue. Datadog's operating margin for the quarter was 24%, up from 21% last quarter and 17% in the year-ago quarter.
Higher free cash flow
Another way to measure Datadog's improving profitability is its free cash flow, or the company's cash from operations, less capital expenditures. Free cash flow rose from about $67 million (15% of revenue) to approximately $138 million (25% of revenue).
Such robust cash flow, of course, is beefing up the company's already strong balance sheet. Datadog wrapped up the quarter with $2.3 billion in cash, cash equivalents, and marketable securities.
Better-than-expected guidance
Finally, investors were likely pleased with the company's revenue guidance. Datadog guided for fourth-quarter revenue to be between $564 million and $568 million. This is well ahead of analysts' average estimate for fourth-quarter revenue of about $543 million. This guidance range implies 20% to 21% year-over-year growth for the final quarter of the year.
Slowing momentum with large customers
Another area the company continues to do well in is its momentum with large customers (i.e., customers with annual recurring revenue of $100,000 or more). At the end of Datadog's third quarter, these customers totaled 3,130, up 20% or more. Datadog also said it closed deals with a record number of customers worth $100,000 or more in annual revenue.
However, Datadog's year-over-year growth rate in large customers may also be a reason to be concerned. Despite this metric's good performance in absolute terms, it's down meaningfully sequentially.
Its customers with more than $100,000 in annual recurring revenue grew 24% year over year in Q2 -- four percentage points higher than the company's 20% growth rate in Q3. If this deceleration persists in Q4 and into 2024, investors may have to revisit whether shares are worth their high valuation. The company's current market capitalization of more than $32 billion prices in rapid growth for years to come.
Overall, however, Datdog's third-quarter performance is good news for investors. Despite the company's strong growth, management emphasized that Datadog is still operating in a tough environment, rife with cloud optimizations (i.e., when organizations try to lower their cloud expenses or at least be more disciplined about spending) and macro uncertainty.
Despite its current challenges, Datadog remains confident in its long-term growth outlook.
"We continue to believe digital transformation and cloud migration are long-term secular growth drivers of our business and critical motions for every company to deliver value and competitive advantage," said Pomel.
10 stocks we like better than Datadog
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*Stock Advisor returns as of November 6, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Since reporting its third-quarter results on Tuesday, shares of cloud monitoring and analytics company Datadog (NASDAQ: DDOG) have surged about 25%. "With our unified, cloud-native, end-to-end observability and security platform, Datadog is uniquely positioned to help our customers reach their goals." "We continue to believe digital transformation and cloud migration are long-term secular growth drivers of our business and critical motions for every company to deliver value and competitive advantage," said Pomel.
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Since reporting its third-quarter results on Tuesday, shares of cloud monitoring and analytics company Datadog (NASDAQ: DDOG) have surged about 25%. Investors cheered Datadog's strong revenue growth, improving profitability, and robust fourth-quarter outlook. Strong sales growth Though Datadog's revenue growth was strong in Q2, coming in at a year-over-year growth rate of 25%, it was notably a deceleration from 33% revenue growth in Q1 and 63% for the full year of 2022.
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Since reporting its third-quarter results on Tuesday, shares of cloud monitoring and analytics company Datadog (NASDAQ: DDOG) have surged about 25%. "Companies across all industries and sizes are building cloud applications and services to deliver positive business outcomes, including more users, higher revenue growth, improved productivity, and cost savings," said Datadog CEO Olivier Pomel in the company's third-quarter earnings release. Strong sales growth Though Datadog's revenue growth was strong in Q2, coming in at a year-over-year growth rate of 25%, it was notably a deceleration from 33% revenue growth in Q1 and 63% for the full year of 2022.
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Since reporting its third-quarter results on Tuesday, shares of cloud monitoring and analytics company Datadog (NASDAQ: DDOG) have surged about 25%. Investors cheered Datadog's strong revenue growth, improving profitability, and robust fourth-quarter outlook. Strong sales growth Though Datadog's revenue growth was strong in Q2, coming in at a year-over-year growth rate of 25%, it was notably a deceleration from 33% revenue growth in Q1 and 63% for the full year of 2022.
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2a996742-6c2e-4512-9814-23a35957136d
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717983.0
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2023-11-10 00:00:00 UTC
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This Top Computer and Technology Stock is a #1 (Strong Buy): Why It Should Be on Your Radar
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DDOG
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https://www.nasdaq.com/articles/this-top-computer-and-technology-stock-is-a-1-strong-buy%3A-why-it-should-be-on-your-33
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nan
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nan
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It doesn't matter if you're a growth, value, income, or momentum-focused investor -- building a successful investment portfolio takes skill, research, and a little bit of luck.
How do you find the right combination of stocks that will generate returns that could fund your retirement, or your kids' college tuition, or your short- and long-term savings goals?
Enter the Zacks Rank.
What is the Zacks Rank?
The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, that makes building a winning portfolio easier.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise.
Agreement is the extent to which all brokerage analysts are revising their earnings estimates in the same direction. The greater the percentage of analysts revising their estimates higher, the better chance the stock will outperform.
Magnitude is the size of the recent change in the consensus estimate for the current and next fiscal years.
Upside is the difference between the most accurate estimate, which is calculated by Zacks, and the consensus estimate.
Surprise is made up of a company's last few quarters' earnings per share surprises; companies with a positive earnings surprise are more likely to beat expectations in the future.
These four factors are assigned a raw score that's recalculated every night, which is then compiled into the ranking system. Stocks are classified into five groups using this data, ranging from "Strong Buy" to "Strong Sell."
The Power of Institutional Investors
The Zacks Rank also allows individual investors, or retail investors, to benefit from the power of institutional investors.
Institutional investors are responsible for managing the trillions of dollars invested in mutual funds, hedge funds, and investment banks. Research has shown that these investors can and do move the market due to the large amount of money they deal with, and thus, the market tends to move in the same direction as them.
In order to figure out the fair value of a company and its shares, these investors will build valuation models focused on earnings and earnings expectations. Because if you raise estimates for the bottom line, it creates a higher fair value for a company.
Institutional investors will use these changes to help in their decision-making, typically buying stocks with rising estimates and selling those with falling estimates. Higher earnings expectations can translate into a rise in stock price and bigger gains for the investor.
Since it can often take weeks, if not months, for an institutional investor to build a position (given their size), retail investors who get in at the first sign of upward earnings estimate revisions have a distinct advantage over these larger investors, and can benefit from the expected institutional buying that will follow.
Not only can the Zacks Rank help you take advantage of trends in earnings estimate revisions, but it can also provide a way to get into stocks that are highly sought after by professionals.
How to Invest with the Zacks Rank
The Zacks Rank is known for transforming investment portfolios. In fact, a portfolio of Zacks Rank #1 (Strong Buy) stocks has beaten the market in 26 of the last 32 years, with an average annual return of +25.41%.
Moreover, stocks with a new #1 (Strong Buy) ranking have some of the biggest profit potential, while those that fell to a #4 (Sell) or #5 (Strong Sell) have some of the worst.
Let's take a look at Datadog (DDOG), which was added to the Zacks Rank #1 list on November 8, 2023.
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The company’s business runs around its portfolio of over 400 out-of-the-box integrations including public cloud, private cloud, on-premise hardware, databases and third-party software.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.03 to $1.35 per share. DDOG also boasts an average earnings surprise of 28.6%.
Earnings are expected to grow 37.8% for the current fiscal year, while revenue is projected to increase 25.7%.
Even more impressive, DDOG has gained in value over the past four weeks, up 13.9% compared to the S&P 500's gain of 0.4%.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Datadog should be on investors' shortlist.
If you want even more information on the Zacks Ranks, or one of our many other investing strategies, check out the Zacks Education home page.
Discover Today's Top Stocks
Our private Zacks #1 Rank List, based on our quantitative Zacks Rank stock-rating system, has more than doubled the S&P 500 since 1988. Applying the Zacks Rank in your own trading can boost your investing returns on your very next trade. See Today's Zacks #1 Rank List >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Let's take a look at Datadog (DDOG), which was added to the Zacks Rank #1 list on November 8, 2023. DDOG also boasts an average earnings surprise of 28.6%. Even more impressive, DDOG has gained in value over the past four weeks, up 13.9% compared to the S&P 500's gain of 0.4%.
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Let's take a look at Datadog (DDOG), which was added to the Zacks Rank #1 list on November 8, 2023. DDOG also boasts an average earnings surprise of 28.6%. Even more impressive, DDOG has gained in value over the past four weeks, up 13.9% compared to the S&P 500's gain of 0.4%.
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Let's take a look at Datadog (DDOG), which was added to the Zacks Rank #1 list on November 8, 2023. DDOG also boasts an average earnings surprise of 28.6%. Even more impressive, DDOG has gained in value over the past four weeks, up 13.9% compared to the S&P 500's gain of 0.4%.
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Let's take a look at Datadog (DDOG), which was added to the Zacks Rank #1 list on November 8, 2023. DDOG also boasts an average earnings surprise of 28.6%. Even more impressive, DDOG has gained in value over the past four weeks, up 13.9% compared to the S&P 500's gain of 0.4%.
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9c776133-6d00-4363-ba95-ecd9ad48c9f0
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717984.0
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2023-11-10 00:00:00 UTC
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Why Datadog Is Out of the Doghouse After Its Latest Earnings Beat
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DDOG
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https://www.nasdaq.com/articles/why-datadog-is-out-of-the-doghouse-after-its-latest-earnings-beat
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nan
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nan
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Shares of Datadog (NASDAQ: DDOG) are up more than 20% this week after the data analytics platform provider announced strong third-quarter 2023 results and raised its full-year outlook.
Datadog's quarterly revenue climbed 25% year over year to $547.5 million, translating to non-GAAP (adjusted) earnings of $0.45 per share. Both metrics easily outpaced analysts' consensus estimates, which called for earnings of $0.34 per share on revenue of $524.2 million.
Delving deeper into those results, Datadog enjoyed continued strength with large customers; the number of customers generating annual recurring revenue (ARR) of at least $100,000 increased 20% year over year to 3,160. Datadog also remains comfortably cash flow positive, generating operating cash flow and free cash flow during the quarter of $152.8 million and $138.2 million, respectively.
But considering this week's pop effectively brings Datadog stock back to levels we last saw prior to its second-quarter report in August -- when shares plummeted after management lowered its 2023 guidance -- does that mean it's officially out of the doghouse?
As a years-long shareholder, I think so. Here's why.
On Datadog's previous guidance reduction
Recall back in August, Datadog management was clear in stating that their guidance relied on conservative assumptions for usage growth from existing customers.
In fact, CFO David Obstler even reminded investors during the company's second-quarter conference call that its "guidance philosophy is to carry forward trends observed in recent quarters, discounted with additional conservatism."
That's fair enough. It's better to under-promise and overdeliver than the other way around, after all. With the brutal combination of macroeconomic uncertainty with recent trends of existing customers focusing on cloud optimization rather than deploying additional workloads, it was hard to blame the company for taking a conservative stance and modestly lowering its previous guidance.
That market didn't see it that way, of course, as shares of Datadog subsequently plunged in response. Heck, one Wall Street analyst even went out on a limb to downgrade Datadog stock a few weeks ago, citing possible demand headwinds, competitive threats, and the likelihood that AI tailwinds may start to subside in the coming quarters.
On Datadog's freshly raised outlook
Looking ahead to the rest of the year, Datadog now expects 2023 revenue to be between $2.103 billion and $2.107 billion, with adjusted earnings of between $1.52 and $1.54. Both ranges marked significant increases from its previously reduced outlook (issued in August), calling for revenue of between $2.05 billion and $2.06 billion and earnings per share between $1.30 and $1.34. The new ranges also represent a big increase from Datadog's earlier 2023 guidance (issued in May 2023), which targeted revenue between $2.08 billion and $2.10 billion and per-share earnings of between $1.13 and $1.20.
So, what changed in the past three months that left Datadog management confident enough to bolster their previously reduced outlook to this extent?
First and foremost, Datadog's value proposition increasingly appears to be too good to pass up.
In the third-quarter press release, for example, Datadog co-founder and CEO Olivier Pomel credited the company's outperformance to a combination of "robust new logo bookings, and a continued focus on solving our customers' DevSecOps [Development, Security, and Operations] pain points."
"Companies across all industries and sizes are building cloud applications and services to deliver positive business outcomes, including more users, higher revenue growth, improved productivity, and cost savings," Pomel said. "With our unified, cloud-native, end-to-end observability and security platform, Datadog is uniquely positioned to help our customers reach their goals."
What's next for Datadog investors?
Better yet, during Datadog's subsequent earnings conference call, Pomel stated that the company is finally "seeing signs that the cloud optimization activity from some of our customers may be moderating."
That's not to say those optimization headwinds have completely subsided. But stabilized usage throughout Q3 for older customers is being nicely complemented by growth from new logo bookings. As Datadog continues to implement its effective land-and-expand model, additional growth from those new logos should only continue to offset future optimization challenges.
In the end, it's worth remembering that Datadog management also insists that we're still in the earliest stages of big tech companies' cloud transformations. As one of the best-positioned businesses to facilitate those transformations, I think Datadog remains one of the most exciting tech stocks our market has to offer.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Steve Symington has positions in Datadog. The Motley Fool has positions in and recommends Datadog. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Datadog (NASDAQ: DDOG) are up more than 20% this week after the data analytics platform provider announced strong third-quarter 2023 results and raised its full-year outlook. With the brutal combination of macroeconomic uncertainty with recent trends of existing customers focusing on cloud optimization rather than deploying additional workloads, it was hard to blame the company for taking a conservative stance and modestly lowering its previous guidance. Heck, one Wall Street analyst even went out on a limb to downgrade Datadog stock a few weeks ago, citing possible demand headwinds, competitive threats, and the likelihood that AI tailwinds may start to subside in the coming quarters.
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Shares of Datadog (NASDAQ: DDOG) are up more than 20% this week after the data analytics platform provider announced strong third-quarter 2023 results and raised its full-year outlook. Datadog also remains comfortably cash flow positive, generating operating cash flow and free cash flow during the quarter of $152.8 million and $138.2 million, respectively. On Datadog's previous guidance reduction Recall back in August, Datadog management was clear in stating that their guidance relied on conservative assumptions for usage growth from existing customers.
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Shares of Datadog (NASDAQ: DDOG) are up more than 20% this week after the data analytics platform provider announced strong third-quarter 2023 results and raised its full-year outlook. Delving deeper into those results, Datadog enjoyed continued strength with large customers; the number of customers generating annual recurring revenue (ARR) of at least $100,000 increased 20% year over year to 3,160. On Datadog's previous guidance reduction Recall back in August, Datadog management was clear in stating that their guidance relied on conservative assumptions for usage growth from existing customers.
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Shares of Datadog (NASDAQ: DDOG) are up more than 20% this week after the data analytics platform provider announced strong third-quarter 2023 results and raised its full-year outlook. Datadog's quarterly revenue climbed 25% year over year to $547.5 million, translating to non-GAAP (adjusted) earnings of $0.45 per share. On Datadog's freshly raised outlook Looking ahead to the rest of the year, Datadog now expects 2023 revenue to be between $2.103 billion and $2.107 billion, with adjusted earnings of between $1.52 and $1.54.
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59c27c2e-9a7c-43c0-a907-ef73f6d7e3d5
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717985.0
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2023-11-10 00:00:00 UTC
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1 Growth Stock Down 47% You'll Regret Not Buying on the Dip, According to Wall Street
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DDOG
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https://www.nasdaq.com/articles/1-growth-stock-down-47-youll-regret-not-buying-on-the-dip-according-to-wall-street
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nan
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nan
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The technology sector is having a great year, with the Nasdaq Composite index up 30% so far. But it's still trading below its all-time high following a brutal sell-off in 2022, and so are most individual stocks in the sector. A challenging economy has hurt companies' ability to deliver the same levels of revenue growth they achieved a couple of years ago, which is pressuring their stock prices. But signs are emerging that the worst might be over.
Cloud monitoring specialist Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30). They were far better than expected, and investors sent its stock surging 28% on the day.
While the stock remains 47% below its all-time high, the professional analysts tracked by The Wall Street Journal are overwhelmingly bullish on its prospects. Here's why investors should buy Datadog stock now.
Image source: Getty Images.
Datadog is an essential platform in the cloud-based corporate world
Many years ago, businesses would maintain physical server hardware on-premise to store their data, host their websites, and run their digital applications. Today, they rent that computing power from enormous centralized data centers instead, which are managed by tech giants like Amazon and Microsoft. It's a practice called cloud computing.
It's very cost-effective because those data centers operate at a scale that lowers prices for everyone. As a result, businesses are running absolutely everything in the cloud, including their sales channels, payment infrastructure, employee collaboration platforms, and data analytics. But it can be challenging to keep track of those digital applications, and that's where Datadog comes in.
The Datadog platform monitors cloud infrastructure around the clock, in real-time. Businesses are alerted immediately if there is an outage on their websites or sales channels, for example, even if it only affects a tiny number of users and would have otherwise been overlooked. The platform is trusted by 26,800 business customers to reduce their downtime and help prevent situations in which revenue could be lost.
Now, Datadog has entered the artificial intelligence (AI) space. In August, the company launched an observability and monitoring platform specifically for developers of large language models, which are used to power generative AI applications. It will help them troubleshoot their models and monitor usage, costs, and performance.
Datadog also launched a generative AI chatbot recently called Bits AI, which could be a game changer. It allows users to query data sets and gain intelligent insights using natural language instead of programming language, which means even non-technical employees within an organization can learn from their crucial data.
Datadog's revenue surged in Q3 as optimization trends eased
Businesses have grappled with a challenging economy over the last 18 months, so rather than investing money in expanding their cloud infrastructure, they have instead focused on optimizing what they already have. This has affected Datadog's growth, but CEO Olivier Pomel said there are signs this trend is moderating.
With that in mind, Datadog generated $548 million in revenue during the third quarter, which was a 25% increase year over year, and significantly above the company's forecast of $525 million. It prompted management to increase its full-year revenue guidance by $47 million (at the high end of the range), to $2.11 billion. That was music to investors' ears.
AI is a massive long-term opportunity, and Pomel said it accounted for 2.5% of the company's annual recurring revenue during the third quarter. That number seems small, but it was likely close to zero before the AI revolution kicked off earlier this year.
Customers dipping their toes into AI products and services is a sign that their focus is shifting back to increasing their cloud spending once again, rather than optimizing.
Datadog also delivered a big profitability result
Datadog also delivered a substantial beat at the bottom line. It generated $0.45 per share in adjusted earnings, which was 32% above what the company had forecast. Adjusted metrics exclude one-off and noncash expenses like stock-based compensation, so it often isn't considered true profitability by investors.
But here's the good news: Datadog also delivered a profit based on generally accepted accounting principles (GAAP) of $0.06 per share during the third quarter. While it was a modest result, it was a big swing from the $0.08-per-share loss in the year-ago quarter.
Wall Street is overwhelmingly bullish on Datadog stock
As already mentioned, investors reacted very positively to Datadog's latest results, although its stock remains 47% below its all-time high. But it probably won't stay that way for long. The Wall Street Journal tracks 39 analysts covering the stock, and 19 of them gave the stock the highest possible buy rating.
Six other analysts are in the overweight (bullish) camp, while 14 recommend holding. Not a single one recommends selling.
That's a very encouraging consensus, and I would expect more analysts to turn bullish in the coming weeks as they digest Datadog's strong third quarter. Plus, with AI now firmly in the company's sights, its appeal will likely grow to capture a broader variety of investors.
They might want to take this opportunity to add Datadog to their portfolios for the long run.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Datadog, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cloud monitoring specialist Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30). A challenging economy has hurt companies' ability to deliver the same levels of revenue growth they achieved a couple of years ago, which is pressuring their stock prices. Datadog is an essential platform in the cloud-based corporate world Many years ago, businesses would maintain physical server hardware on-premise to store their data, host their websites, and run their digital applications.
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Cloud monitoring specialist Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30). While the stock remains 47% below its all-time high, the professional analysts tracked by The Wall Street Journal are overwhelmingly bullish on its prospects. The Datadog platform monitors cloud infrastructure around the clock, in real-time.
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Cloud monitoring specialist Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30). With that in mind, Datadog generated $548 million in revenue during the third quarter, which was a 25% increase year over year, and significantly above the company's forecast of $525 million. Wall Street is overwhelmingly bullish on Datadog stock As already mentioned, investors reacted very positively to Datadog's latest results, although its stock remains 47% below its all-time high.
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Cloud monitoring specialist Datadog (NASDAQ: DDOG) just released its financial results for the third quarter (ended Sept. 30). With that in mind, Datadog generated $548 million in revenue during the third quarter, which was a 25% increase year over year, and significantly above the company's forecast of $525 million. Wall Street is overwhelmingly bullish on Datadog stock As already mentioned, investors reacted very positively to Datadog's latest results, although its stock remains 47% below its all-time high.
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374015a7-e48d-4aca-9716-c34dc62802c2
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717986.0
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2023-11-10 00:00:00 UTC
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You Can't Control Big Daily Stock Gains, but You Can Control What You Do About Them
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DDOG
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https://www.nasdaq.com/articles/you-cant-control-big-daily-stock-gains-but-you-can-control-what-you-do-about-them
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nan
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nan
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Datadog (NASDAQ: DDOG) stock had an incredible day on Nov. 7 after it reported third-quarter earnings. The stock was up a little over 30% at its peak and ended the day up a still shocking 28% or so.
As an investor, it is wonderful to see such massive gains, but that kind of volatility can go both ways. So you need to step back and ask yourself if a big daily stock advance is underpinned by reality or just an overly emotional Wall Street.
Datadog rocked the quarter
Giving credit where credit is due, Datadog's third-quarter results were quite strong. Revenue reached $547.5 million, a huge 25% year-over-year increase. Analysts had been expecting a touch over $524 million.
Image source: Getty Images.
On the bottom line, Wall Street analysts expected adjusted earnings of $0.34 per share. But the cloud monitoring, analytics, and security company came in with adjusted earnings of $0.45 per share. A 20% increase in high-value customers (those that spend over $100,000 per year) was a highlight from the quarter.
Adding to the excitement, management increased its full-year guidance for revenue and adjusted earnings. Sales are now projected to be a little over $2.1 billion, up from previous guidance of around $2.05 billion.
Adjusted earnings for all of 2023 are now expected to be between $1.52 and $1.54 per share, up from previous guidance of $1.30 and $1.34. While the updated revenue guidance isn't a gigantic shift, the bottom line guidance changed materially.
So there were some solid reasons for the big stock price advance, but it very quickly priced in a lot of good news. How does that play into the bigger story?
Datadog is a long-term growth story, not a one-quarter growth story
While the one-day advance based on a single good quarter was probably a welcome surprise for investors, you need to step back and think about what really happened. Simply put, Mr. Market got very exuberant very quickly. But why?
The obvious reason is that Datadog beat consensus estimates and raised its full-year guidance. However, the cloud sector has been in a bit of a funk since hitting a recent high-water mark in the second half of 2021.
Datadog's stock, meanwhile, lagged the broader cloud sector, using the Global X Cloud Computing ETF as a proxy. The big daily price jump, which shows up at the tail end of the graph below, is at least partly related to closing that performance gap.
DDOG data by YCharts; ETF = exchange-traded fund.
This isn't just a story of Datadog performing well. It seems likely that investors are reassessing just how negative they were on the company. The swift price jump suggests that the strong performance convinced Wall Street that the company's long-term outlook is rosier than many believed.
Which brings up the stock's lofty valuation. The price-to-sales (P/S) ratio is around 17. That's historically low for Datadog, but compared to some of the technology industry's biggest names, it is still quite high. This means investors are already pricing in a lot of growth ahead.
DDOG PS ratio data by YCharts.
If you have a value bent, Datadog probably isn't the stock for you. And even if you think the company has a bright future, you need to make sure you have a strong conviction backing that belief, given the lofty P/S ratio.
Clearly, the strong third quarter hints that there is a growth opportunity here, but after the shocking one-day price advance, you should probably step back and consider your investment thesis again.
There's no need to do anything
Just because a stock you own has a huge one-day gain doesn't mean you have to make any changes to your portfolio. You can't control big daily stock gains, but you do get to control what you do about them.
In the case of Datadog, you should probably revisit your reasons for owning the stock, given that a nearly 30% price advance discounts a lot of future good news. However, you might actually find that you are more excited now than you were before the strong third-quarter earnings release and guidance update.
10 stocks we like better than Datadog
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Datadog wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 6, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Datadog, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG) stock had an incredible day on Nov. 7 after it reported third-quarter earnings. DDOG data by YCharts; ETF = exchange-traded fund. DDOG PS ratio data by YCharts.
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Datadog (NASDAQ: DDOG) stock had an incredible day on Nov. 7 after it reported third-quarter earnings. DDOG data by YCharts; ETF = exchange-traded fund. DDOG PS ratio data by YCharts.
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Datadog (NASDAQ: DDOG) stock had an incredible day on Nov. 7 after it reported third-quarter earnings. DDOG data by YCharts; ETF = exchange-traded fund. DDOG PS ratio data by YCharts.
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Datadog (NASDAQ: DDOG) stock had an incredible day on Nov. 7 after it reported third-quarter earnings. DDOG data by YCharts; ETF = exchange-traded fund. DDOG PS ratio data by YCharts.
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afe82a92-601b-4b0b-a2c9-39482d8137d3
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717987.0
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2023-11-09 00:00:00 UTC
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3 Stocks to Buy Your Grandkids This Holiday Season
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DDOG
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https://www.nasdaq.com/articles/3-stocks-to-buy-your-grandkids-this-holiday-season
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The holidays are fast approaching, meaning it’s time to start making a gift list and checking it twice. Figuring out what to get the grandkids can be particularly difficult for people. Beyond any generational divide that might exist, it can be hard to figure out what the grandkids already have and what they might need. Do they really need another screen to watch? Are they growing out of their clothes? However, why not buy the grandchildren stock? A long-term investment in a great company can be a smart move, one that will literally pay dividends for many years. While the grandkids might not be thrilled to receive share certificates on Christmas morning, they’ll likely appreciate the foresight of an investment as they get older and have to pay for things such as college. There can even be tax benefits to gifting stock. Here are three stocks to buy for your grandkids this holiday season.
Roblox (RBLX)
Source: Miguel Lagoa / Shutterstock.com
Be the cool grandparent this holiday season and buy your grandkids shares of online video-game developer Roblox (NYSE:RBLX). On the day of this writing, RBLX stock is up 17% after the company issued third-quarter results. These stocks were much stronger than Wall Street forecasts. The company, whose online video game of the same name reported 70.2 million daily active users in Q3, is up 20% from a year earlier.
Users spent more than 16 billion hours playing Roblox during the quarter, also an increase of 20% from a year ago. Owing to the increasing popularity of the company’s video game, Roblox posted a loss per share of 45 cents in its latest quarter. This was better than the loss of 51 cents that analysts had penciled in for the company. Revenue in the quarter totaled $839 million compared to $830 million that was expected. The company said that it has slowed its spending across major expense categories, and that it plans to begin providing forward guidance to analysts in 2024.
RBLX stock has now gained 48% on the year.
New York Times Co. (NYT)
Source: pio3 / Shutterstock.com
Not nearly as cool as Roblox, but a great long-term investment nonetheless, is The New York Times Co. (NYSE:NYT). The publisher of The New York Times newspaper has just reached a major milestone, surpassing 10 million subscribers for the first time in its 172-year history. The continued strong subscriber growth brings the Times closer to its stated goal of 15 million paid subscriptions by the end of 2027. The company had 9.41 million digital subscribers, plus 670,000 print subscriptions, at the end of Q3 this year.
The subscription milestone was revealed along with Q3 financial results that showed the Gray Lady, as The New York Times is affectionately known, is firing on all cylinders. The company posted earnings per share (EPS) of 37 cents, which was better than the 29 cents expected by analysts. Revenue grew nearly 10% from a year earlier to $598.3 million, topping forecasts of $589.8 million. Total advertising at the Times, digital and print combined, rose 6% to $117.1 million in Q3.
Looking ahead, the Times forecasts total subscription revenue for this year will increase 8% to 11% from a year ago, as well as a single-digit percentage increase in digital ad revenue. NYT stock rose 8% after its Q3 print, bringing its year-to-date gain to 36%. Buy this stock for your grandkids. They’ll thank you when they’re older.
Datadog (DDOG)
Source: Karol Ciesluk / Shutterstock.com
Another tech stock to consider stuffing in your grandkids stockings this holiday season is Datadog (NASDAQ:DDOG). The company’s stock recently soared 28% in a single trading session after the software company reported better-than-expected Q3 results and raised its full-year guidance. The company, whose software is used in cloud-computing, reported EPS of 45 cents, beating expectations for 34 cents. Revenue in Q3 came in at $547.5 million, up 25% from a year earlier and beating Wall Street forecasts.
Founded in 2010 and publicly traded since 2019, Datadog builds cloud monitoring and security products that work with Amazon Web Services (NASDAQ:AMZN), and Microsoft Azure (NASDAQ:MSFT), among other cloud-computing offerings. Datadog issued a bullish full-year outlook along with its Q3 numbers, saying it now expects Q4 revenue of between $564 million and $568 million, and full-year revenue of $2.1 billion. Both figures exceeded consensus analyst forecasts.
Including the recent 28% surge, DDOG stock has gained 40% this year, with more upside likely ahead.
On the date of publication, Joel Baglole held a long position in MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 3 Stocks to Buy Your Grandkids This Holiday Season appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Another tech stock to consider stuffing in your grandkids stockings this holiday season is Datadog (NASDAQ:DDOG). Including the recent 28% surge, DDOG stock has gained 40% this year, with more upside likely ahead. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Another tech stock to consider stuffing in your grandkids stockings this holiday season is Datadog (NASDAQ:DDOG). Including the recent 28% surge, DDOG stock has gained 40% this year, with more upside likely ahead. Roblox (RBLX) Source: Miguel Lagoa / Shutterstock.com Be the cool grandparent this holiday season and buy your grandkids shares of online video-game developer Roblox (NYSE:RBLX).
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Another tech stock to consider stuffing in your grandkids stockings this holiday season is Datadog (NASDAQ:DDOG). Including the recent 28% surge, DDOG stock has gained 40% this year, with more upside likely ahead. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The holidays are fast approaching, meaning it’s time to start making a gift list and checking it twice.
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Datadog (DDOG) Source: Karol Ciesluk / Shutterstock.com Another tech stock to consider stuffing in your grandkids stockings this holiday season is Datadog (NASDAQ:DDOG). Including the recent 28% surge, DDOG stock has gained 40% this year, with more upside likely ahead. The publisher of The New York Times newspaper has just reached a major milestone, surpassing 10 million subscribers for the first time in its 172-year history.
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c4ef5f09-716f-4411-8d09-4d3cac92660f
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717988.0
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2023-11-09 00:00:00 UTC
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Why Datadog (DDOG) Might be Well Poised for a Surge
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DDOG
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https://www.nasdaq.com/articles/why-datadog-ddog-might-be-well-poised-for-a-surge
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nan
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nan
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Datadog (DDOG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Datadog, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.34 per share, which is a change of +30.77% from the year-ago reported number.
Over the last 30 days, one estimate has moved higher for Datadog compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 22.22%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $1.32 per share represents a change of +34.69% from the year-ago number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Datadog. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 66.67%.
Favorable Zacks Rank
Thanks to promising estimate revisions, Datadog currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
Datadog shares have added 11.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Analysts' growing optimism on the earnings prospects of this data analytics and cloud monitoring company is driving estimates higher, which should get reflected in its stock price.
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Datadog (DDOG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 66.67%.
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Datadog (DDOG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
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Datadog (DDOG) appears an attractive pick given a noticeable improvement in the company's earnings outlook. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Datadog, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
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2001d1c7-b56c-4286-a7b3-18e8134a5c65
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717989.0
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2023-11-08 00:00:00 UTC
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3 Cloud Stocks to Buy in the Top-Rated Zacks Internet-Software Industry
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DDOG
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https://www.nasdaq.com/articles/3-cloud-stocks-to-buy-in-the-top-rated-zacks-internet-software-industry
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nan
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nan
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The increasing need for cloud-related services currently has the Zacks Internet-Software Industry in the top 19% of over 250 Zacks industries.
As one of the trendiest spaces in tech here are several cloud-related stocks ithat were recently added to the Zacks Rank #1 (Strong Buy) list this week.
AppFolio APPF : After blasting third-quarter earnings expectations in late October, AppFolio’s stock stands out in terms of growth and momentum. Providing cloud-based software solutions for property management and legal industries, AppFolio’s Q3 earnings of $0.59 per share came in 47% above estimates of $0.40 a share.
AppFolio also surpassed top-line estimates with Q3 sales of $165.44 million beating expectations by 6%. More impressive, Q3 earnings soared from EPS of $0.11 a share in the prior year quarter with sales climbing 32% from $125.08 million a year ago.
Annual earnings are now forecasted to skyrocket to $1.62 per share in fiscal 2023 versus an adjusted loss of -$0.02 a share in 2022. Even better, FY24 earnings are projected to expand another 94% to $3.15 per share. In correlation with such lofty growth and expansion, AppFolio’s stock has now soared over +90% this year.
Image Source: Zacks Investment Research
Cloudflare NET: With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
As a global cloud services provider that delivers a suite of integrated products including website and application security, Q3 earnings of $0.16 per share reassuring surpassed estimates of $0.10 a share with sales of $335.6 million outpacing estimates of $330.5 million. Year over year, Cloudflare’s earnings surged 167% from EPS of $0.06 a share in Q3 2022 with sales climbing 32% from the prior year quarter.
Illustrating impactful demand Cloudflare is expecting high double-digit percentage growth on its top and bottom lines in fiscal 2023 and FY24. With the EPS figures below it's noteworthy that total sales are now projected to soar 32% this year and climb another 28% in FY24 to $1.64 billion which further illustrates Cloudflare’s lucrative earnings potential.
Image Source: Zacks Investment Research
Datadog (DDOG): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating.
Datadog’s growth is compelling as a monitoring and analytics platform for developers, operating over 400 integrations including public cloud, private cloud, on-premise hardware, databases, and third-party software.
Surpassing Q3 expectations on Tuesday, Datadog posted EPS of $0.45 which topped estimates of $0.34 a share by 32% with sales of $547.54 million coming in 4% better than expected. Third quarter earnings soared 95% from $0.23 per share a year ago with sales up 25% from the prior year quarter. Datadog’s stock is up a very respectable +36% YTD with it most noteworthy that annual earnings are now forecasted to climb 34% in FY23 and leap another 14% in FY24 at $1.51 per share.
Image Source: Zacks Investment Research
Bottom Line
The growth of cloud services has been remarkable and investing in AppFolio, Cloudflare, and Datadog's stock is starting to look like a very viable way to cash in on the broader expansion of the internet-software realm.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AppFolio, Inc. (APPF) : Free Stock Analysis Report
Cloudflare, Inc. (NET) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research Datadog (DDOG): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating. Click to get this free report AppFolio, Inc. (APPF) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. As one of the trendiest spaces in tech here are several cloud-related stocks ithat were recently added to the Zacks Rank #1 (Strong Buy) list this week.
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Click to get this free report AppFolio, Inc. (APPF) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog (DDOG): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating. Image Source: Zacks Investment Research Cloudflare NET: With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
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Click to get this free report AppFolio, Inc. (APPF) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Datadog (DDOG): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating. Image Source: Zacks Investment Research Cloudflare NET: With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
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Image Source: Zacks Investment Research Datadog (DDOG): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating. Click to get this free report AppFolio, Inc. (APPF) : Free Stock Analysis Report Cloudflare, Inc. (NET) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Cloudflare NET: With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
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7a287363-0a35-488c-aa66-a8a5820e0d3f
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717990.0
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2023-11-08 00:00:00 UTC
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Datadog (DDOG) Just Overtook the 20-Day Moving Average
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-just-overtook-the-20-day-moving-average-0
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nan
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nan
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After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of DDOG have been moving higher over the past four weeks, up 11.5%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that DDOG could be poised for a continued surge.
Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that DDOG could be poised for a continued surge. Investors should think about putting DDOG on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
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DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. Looking at DDOG's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
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DDOG surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. After reaching an important support level, Datadog (DDOG) could be a good stock pick from a technical perspective. Shares of DDOG have been moving higher over the past four weeks, up 11.5%.
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36d17987-ed03-4a8a-8dc8-baa80082e88f
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717991.0
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2023-11-08 00:00:00 UTC
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Datadog (DDOG) Just Overtook the 200-Day Moving Average
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-just-overtook-the-200-day-moving-average
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nan
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nan
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From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. DDOG recently overtook the 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
Shares of DDOG have been moving higher over the past four weeks, up 11.5%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that DDOG could be poised for a continued surge.
The bullish case solidifies once investors consider DDOG's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that DDOG could be poised for a continued surge. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support.
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With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support.
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With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DDOG for more gains in the near future. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support.
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DDOG recently overtook the 200-day moving average, and this suggests a long-term bullish trend. From a technical perspective, Datadog (DDOG) is looking like an interesting pick, as it just reached a key level of support. Shares of DDOG have been moving higher over the past four weeks, up 11.5%.
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6e41d773-c786-4601-8211-4b984946b94c
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717992.0
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2023-11-08 00:00:00 UTC
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Datadog stock soars 28 percent after strong q3 earnings
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DDOG
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https://www.nasdaq.com/articles/datadog-stock-soars-28-percent-after-strong-q3-earnings
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nan
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nan
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Datadog (NASDAQ: DDOG), the cloud monitoring software firm, experienced an impressive 28% surge in its stock value, marking a significant milestone and its best day ever. This growth follows Datadog's release of its third-quarter earnings report, which exceeded expectations and included an upward revision of its full-year guidance, earning applause from investors and analysts.
In its quarterly report, Datadog disclosed revenues of $547.5 million, showcasing a 25% year-over-year increase, aligning with the growth rate observed in the previous quarter. Analysts had anticipated revenues of around $524.1 million, making Datadog's actual performance a surprise. Furthermore, the company reported adjusted earnings per share of 45 cents, outperforming analysts' expectations of 34 cents.
Datadog's optimistic outlook extended to its full-year forecast, which projected fourth-quarter revenues between $564 million and $568 million and full-year revenues approximating $2.1 billion. Both figures surpassed consensus estimates of $543.3 million and $2.06 billion.
During an analyst conference call, Datadog's Co-founder and CEO, Olivier Pomel, revealed an intriguing detail. He noted that "AI-native customers" contributed 2.5% of Datadog's annualized revenue during the quarter. Although Pomel refrained from specifying the exact entities involved, it ignited speculation about potential collaborations with notable tech companies such as OpenAI, Anthropic, or Cohere, all known for providing access to advanced large language models capable of generating text with minimal human input.
Datadog's remarkable surge also positively impacted other cloud-computing stocks, including MongoDB (NASDAQ: MDB) and Snowflake (NYSE: SNOW). This boost in guidance signifies a notable shift in Datadog's performance, especially after the stock faced a sharp decline in August when the company adjusted its guidance due to reductions in cloud-related expenditures.
Fundamentally, Datadog specializes in developing cloud monitoring and security products catering to many businesses, from small enterprises to large corporations. These products seamlessly integrate with major cloud infrastructure providers, including Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), and Microsoft (NASDAQ: MSFT).
The slowdown observed in cost optimization efforts by various organizations within the cloud industry was acknowledged by Datadog. Pomel validated this observation, suggesting that the intensity and extent of optimization activities by Datadog's clients may be diminishing. However, Datadog remains optimistic about the fourth quarter, even with the expected decrease in usage during the holiday season.
Analysts at JPMorgan Chase & Co (NYSE: JPM) upgraded their rating of Datadog from "neutral" to "overweight." They cited a possible end to the revenue growth deceleration that the company, like other cloud infrastructure platforms such as Amazon Web Services and Microsoft Azure, experienced due to the impact of inflation on IT spending. The analysts mentioned that the slowdown, which had led to a drop in Datadog's revenue growth from 83% in early 2022 to its current 25%, may be starting to level out.
Datadog's stock surge reflects the company's resilience and potential to overcome challenges. As Datadog continues to innovate and adapt, it also continues to solidify its position as a major cloud monitoring software industry player.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (NASDAQ: DDOG), the cloud monitoring software firm, experienced an impressive 28% surge in its stock value, marking a significant milestone and its best day ever. Although Pomel refrained from specifying the exact entities involved, it ignited speculation about potential collaborations with notable tech companies such as OpenAI, Anthropic, or Cohere, all known for providing access to advanced large language models capable of generating text with minimal human input. They cited a possible end to the revenue growth deceleration that the company, like other cloud infrastructure platforms such as Amazon Web Services and Microsoft Azure, experienced due to the impact of inflation on IT spending.
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Datadog (NASDAQ: DDOG), the cloud monitoring software firm, experienced an impressive 28% surge in its stock value, marking a significant milestone and its best day ever. Furthermore, the company reported adjusted earnings per share of 45 cents, outperforming analysts' expectations of 34 cents. These products seamlessly integrate with major cloud infrastructure providers, including Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), and Microsoft (NASDAQ: MSFT).
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Datadog (NASDAQ: DDOG), the cloud monitoring software firm, experienced an impressive 28% surge in its stock value, marking a significant milestone and its best day ever. This growth follows Datadog's release of its third-quarter earnings report, which exceeded expectations and included an upward revision of its full-year guidance, earning applause from investors and analysts. In its quarterly report, Datadog disclosed revenues of $547.5 million, showcasing a 25% year-over-year increase, aligning with the growth rate observed in the previous quarter.
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Datadog (NASDAQ: DDOG), the cloud monitoring software firm, experienced an impressive 28% surge in its stock value, marking a significant milestone and its best day ever. In its quarterly report, Datadog disclosed revenues of $547.5 million, showcasing a 25% year-over-year increase, aligning with the growth rate observed in the previous quarter. Datadog's optimistic outlook extended to its full-year forecast, which projected fourth-quarter revenues between $564 million and $568 million and full-year revenues approximating $2.1 billion.
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5a0b2899-9c10-4c37-a6f9-099efe6df96b
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717993.0
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2023-11-08 00:00:00 UTC
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DDOG Factor-Based Stock Analysis
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DDOG
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https://www.nasdaq.com/articles/ddog-factor-based-stock-analysis-2
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nan
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nan
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS: PASS
CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS
RETURN ON ASSETS VARIANCE: PASS
SALES VARIANCE: PASS
ADVERTISING TO ASSETS: FAIL
CAPITAL EXPENDITURES TO ASSETS: PASS
RESEARCH AND DEVELOPMENT TO ASSETS: PASS
Detailed Analysis of DATADOG INC
DDOG Guru Analysis
DDOG Fundamental Analysis
More Information on Partha Mohanram
Partha Mohanram Portfolio
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. DATADOG INC (DDOG) is a large-cap growth stock in the Software & Programming industry.
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Below is Validea's guru fundamental report for DATADOG INC (DDOG).
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Below is Validea's guru fundamental report for DATADOG INC (DDOG). Of the 22 guru strategies we follow, DDOG rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. Detailed Analysis of DATADOG INC DDOG Guru Analysis DDOG Fundamental Analysis More Information on Partha Mohanram Partha Mohanram Portfolio About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing.
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bca25a14-142a-40c3-abe9-d1bcaf912dec
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717994.0
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2023-11-08 00:00:00 UTC
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Brian's Big Idea on Trending Stocks
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DDOG
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https://www.nasdaq.com/articles/brians-big-idea-on-trending-stocks
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nan
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nan
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Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has a new big idea on that involves stocks that are in the news. Recently there have been some big earnings reports that have caused a lot of stocks to soar. But how can you know what stocks will report good quarters ahead of the report? More on that in a minute, let’s take a look at the stocks that Brian looks at.
First up is the big move that Roku ROKU has made since it last reported. Brian notes that the company posted a miss, but the estimates have moved in the right direction. This has helped the stock run from the $50 range to more than $80 in just a few days.
Next up is DataDog DDOG which also had a great report the other day. This stock has moved from the low $80 range to over $100 as a result. This stock is a Zacks Rank #1 (Strong Buy) and as the aggressive growth stock strategist Brian loves to see the A for Growth and F for value that this stock has as its Style Scores.
Finally, Brian looks at Roblox RBLX which just reported on November 7. Today the stock is up some 17% after posting a big beat.
Now these would all be great stocks to have purchased ahead of the reports, but how would you know which ones to buy?
At Zacks, we have a great service run by Bryan Hayes that looks at the headlines of the day and then leverages the Zacks Rank to select the best ones for that portfolio. To say that Bryan has the hottest hand at Zacks would be an understatement.
Headliner Trader was invested in one the three stocks that was mentioned above and has it has one of the biggest positions in the portfolio. It should also be noted that Bryan has managed to show a gain for all 12 stocks that he has in the portfolio including a winner of more than 100% and another stock on the verge of being a triple digit performer.
His service delivers an email nightly recap of what is going on in the broader markets as well as any important updates to the stocks that are in the portfolio. It is certainly worth a deeper look.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roku, Inc. (ROKU) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Roblox Corporation (RBLX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Next up is DataDog DDOG which also had a great report the other day. Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Roblox Corporation (RBLX) : Free Stock Analysis Report To read this article on Zacks.com click here. His service delivers an email nightly recap of what is going on in the broader markets as well as any important updates to the stocks that are in the portfolio.
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Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Roblox Corporation (RBLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Next up is DataDog DDOG which also had a great report the other day. Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has a new big idea on that involves stocks that are in the news.
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Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Roblox Corporation (RBLX) : Free Stock Analysis Report To read this article on Zacks.com click here. Next up is DataDog DDOG which also had a great report the other day. Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has a new big idea on that involves stocks that are in the news.
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Next up is DataDog DDOG which also had a great report the other day. Click to get this free report Roku, Inc. (ROKU) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Roblox Corporation (RBLX) : Free Stock Analysis Report To read this article on Zacks.com click here. At Zacks, we have a great service run by Bryan Hayes that looks at the headlines of the day and then leverages the Zacks Rank to select the best ones for that portfolio.
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3d9859a6-5b0e-4349-b868-aceea2c20fbe
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717995.0
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2023-11-08 00:00:00 UTC
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Bull of the Day: Datadog (DDOG)
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DDOG
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https://www.nasdaq.com/articles/bull-of-the-day%3A-datadog-ddog
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nan
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nan
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Datadog (DDOG), a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard.
As I write this on Tuesday morning, shares are trading 30% higher, approaching levels not seen since their gap down from $106 after an August earnings disappointment.
It appears DDOG is finally out of the dog house. And while the stock is a Zacks #2 Rank as type, I expect it to move into the upper deck soon after all the upward estimate revisions from analysts find their way into the Zacks Rank daily calculus.
Why Did the Street Get It Wrong?
There was a lot of pessimism going into this Q3 report.
And I tried to take advantage of it for my TAZR Trader group. On October 16, I published a special report for Zacks Confidential members titled "State of Threat: Cyber Crime 3.0" where I highlighted the evolving sophistication of global threat actors wreaking havoc for all kinds of companies, including most recently MGM Resorts, 23andMe, and Flagstar Bank of Michigan.
I explained how "ransom ware" attacks just went ICBM with state-sponsored infrastructure and weapons.
Here’s what I wrote when I bought DDOG for my TAZR Trader group the previous week...
TAZR Portfolio is buying a starter position in Datadog (DDOG) between $85 and $90. We would add to this Zacks #1 Rank on any drop after earnings 11/7.
While DDOG is largely a data monitoring and analytics platform, Piper Sandler recently made it one of their top 5 cybersecurity picks as an end-to-end observability and cloud security platform. The Piper team has a price target for DDOG shares at $115, implying over 25% potential upside.
Data is the gold of this new digital age and we need look no further than the recent acquisition of Splunk by Cisco to see what enterprises are willing to invest to stay ahead.
Baillie Gifford Stakes a Big DDOG Claim
One of my favorite institutional Technology investors, Baillie Gifford, increased their Datadog position by 70% in Q2 to make them the 3rd largest holder, behind Vanguard and BlackRock, with over 10 million shares.
If you've seen my pieces on those Scottish Warlords of Edinburgh, you know they are buy and hold fanatics who do deep research, especially in novel technology platforms like Tesla (TSLA).
So while we can see they would have been buying DDOG shares between $60 and $90 in Q2, I don't expect to see that they turned sellers in Q3. In fact, they were probably buying again on the earnings August gap down.
Slowing Revenue Growth Priced-In
Bank of America is not as optimistic as Piper and downgraded shares to Neutral earlier this week, citing demand checks and scenario analysis suggesting downside revenue risk. They also lowered their price target to $105 from $123.
Technically, the stock has held up well since the gap down to $84 after August earnings, marking a higher low and potentially gearing up for a run to fill the gap down from $105.
And even the BofA downgrade has barely put a dent. Their "neutral" thesis and revenue concern centers around Datadog's "best-of-breed" premium service offering as being "too expensive" given potential competition. This might explain their 35% profit growth this year.
"Datadog is widely perceived to be a premium offering, which could drive the end-market to lower cost competitors, native hyperscaler offerings, and/or open-source alternatives, which could constrain revenue, RPO and billings growth," according to the BofA report.
The analysts now expect the software vendor to report 2024 revenue of $2.40 billion, down from its prior outlook of $2.57 billion. This makes DDOG trade at over 10x sales, but it offers unique solutions that should see 20%+ demand growth.
Remember, the Fortune 1000 needs all of these top "operators" to defend specific perimeters in combination.
(end of excerpt from my 10/16 Zacks Confidential report "State of Threat: Cyber Crime 3.0")
If you want a copy of that report, just email Ultimate@Zacks.com and tell ‘em Cooker sent you.
Out of the Doghouse
Even days before the DDOG Q3 report, Stifel analysts were subdued about what to expect in their earnings preview...
"As we have said since our downgrade last quarter, 2024 sellside expectations (~22%) remain too high. While buyside expectations are muted into the print, we do not envision multiple expansion until revenue growth stabilizes and/or potential Fed rate cuts become clearer."
That ~22% is referring to the revenue consensus for next year. And Stifel analysts could still be right that current estimates for the company to cross $2.5 billion in 2024 are too high.
But right now, all eyes are on the notable Q3 revenue beat and lift in guidance for this year.
Q3 revenue came in at $547.5 million, up over 25% from $436.5 million a year before and ahead of the $524M consensus.
Even better, for Q4 Datadog anticipates $564 million to $568 million in revenue along with 42 cents to 44 cents in adjusted earnings per share. Analysts were looking for $545 million and 35 cents, respectively.
The company’s “beat-and-raise” was driven by customer demand for better security solutions amid increasing cybersecurity threats.
Datadog management lifted their full-year 2023 revenue forecast to the range of $2.10-$2.11 billion, from a prior $2.05-$2.06 billion.
And they see adjusted (non-GAAP) earnings between $1.52 and $1.54 per share, up from $1.30-$1.34 per share expected earlier.
Datadog's total number of new and existing customers with annual recurring revenue (ARR) of $100,000 or more rose 20% year-over-year to 3,130.
The Year Ahead
While investors now have renewed optimism in the near term, we still don’t know what 2024 looks like.
But we’ll get a much better idea in the coming days as analysts rework their models and projections for demand and growth. Be sure to check the Zacks Detailed Estimates page for DDOG to see the upward revisions as they filter in.
"Companies across all industries and sizes are building cloud applications and services to deliver positive business outcomes, including more users, higher revenue growth, improved productivity, and cost savings," said Datadog CEO Olivier Pomel.
In sympathy with Pomel's outlook, other data-centric operations platforms like Snowflake (SNOW) and MongoDB (MDB) were up 10-12% Tuesday morning.
And now, DDOG is recognized even more as the go-to hound for cybersecurity.
If Datadog shares have any kind of pullback to fill the gap up from $80, I would be a buyer. But I doubt it gets below Tuesday’s low near $96 so you better move fast.
Disclosure: I own shares of DDOG for the Zacks TAZR Trader portfolio.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
Snowflake Inc. (SNOW) : Free Stock Analysis Report
MongoDB, Inc. (MDB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog (DDOG), a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard. It appears DDOG is finally out of the dog house. Here’s what I wrote when I bought DDOG for my TAZR Trader group the previous week...
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Datadog (DDOG), a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard. Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report To read this article on Zacks.com click here. It appears DDOG is finally out of the dog house.
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Click to get this free report Datadog, Inc. (DDOG) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report MongoDB, Inc. (MDB) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog (DDOG), a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard. It appears DDOG is finally out of the dog house.
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Datadog (DDOG), a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard. It appears DDOG is finally out of the dog house. Here’s what I wrote when I bought DDOG for my TAZR Trader group the previous week...
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f3076013-1b57-45a1-9a5b-5a6a05168fb9
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717996.0
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2023-11-08 00:00:00 UTC
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Datadog (DDOG) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
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DDOG
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https://www.nasdaq.com/articles/datadog-ddog-q3-earnings-beat-estimates-revenues-rise-y-y
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nan
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nan
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Datadog DDOG reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter.
The company’s net revenues of $547.5 million increased 25.4% year over year. The Zacks Consensus Estimate for revenues was pegged at $523 million.
Datadog, Inc. Price, Consensus and EPS Surprise
Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote
Quarter Details
In the third quarter of 2023, Datadog had about 3,130 customers with an annual run rate (ARR) of $100K or more, up from 2,600 in the year-ago quarter.
As of the end of the third quarter, 82% of customers used two or more products, up from 80% in the year-ago quarter. Additionally, 46% of customers utilized four or more products, up from 40% in the year-ago quarter.
Datadog’s dollar-based retention rate was slightly below 120% as customers increased their usage and adopted more products.
Operating Details
In the third quarter, Datadog’s adjusted gross margin increased 260 basis points (bps) on a year-over-year basis to 82.3%.
Research & development expenses gained 12.7% on a year-over-year basis to $155.8 million, driven by increased investments in Datadog’s platform. Research & development, as a percentage of revenues, decreased 320 bps to 28.5%.
Sales and marketing expenses increased 18.6% year over year to $127.5 million. Sales and marketing expenses, as a percentage of revenues, decreased 130 bps to 23.3%.
General & administrative expenses increased 34.2% year over year, reaching $36.8 million in the reported quarter. General & administrative expenses, as a percentage of revenues, expanded 40 bps to 6.7%.
Datadog reported a non-GAAP operating income of $130.8 million compared with $74.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Datadog had cash, cash equivalents, restricted cash and marketable securities of $2.3 billion compared with $2.2 billion as of Jun 30, 2023.
Operating cash flow was $152.8 million in the reported quarter, down from $153.2 million reported in the previous quarter.
Free cash flow during the quarter was $138.2 million compared with $141.7 million in the prior quarter.
Guidance
For the fourth quarter of 2023, Datadog anticipates revenues between $564 million and $568 million. The Zacks Consensus Estimate for the same is pegged at $541.39 million.
Non-GAAP earnings are expected in the range of 42-44 cents per share. The consensus mark for earnings is pegged at 34 cents per share.
Non-GAAP operating income is expected in the range of $129-$133 million.
For 2023, Datadog anticipates revenues between $2.103 billion and $2.107 billion. The Zacks Consensus Estimate for the same is pegged at $2.06 billion.
Non-GAAP earnings per share are expected between $1.52 and $1.54. The Zacks Consensus Estimate for earnings is pegged at $1.32 per share.
Non-GAAP operating income is expected in the range of $453-$457 million.
Q3 Highlights
Datadog had a strong quarter for infrastructure monitoring ARR, which exceeded $1 billion due to continuous innovation and demand for serverless functions.
Datadog launched new logos, workloads and products in the third quarter. This attracted a number of exciting new customers in the third quarter.
For the second quarter in a row, the company closed a record number of new deals with more than $100,000 in annual commitments.
Some of the notable deals done in third-quarter 2023 are a seven-figure deal with a South American FinTech company, the U.S. federal agency and a Fortune 500 industrial company. Datadog’s other important agreement includes an eight-figure deal with a major American
chain of convenience stores.
Zacks Rank & Other Stocks to Consider
Currently, Datadog sports a Zacks Rank #1 (Strong Buy).
NetEase NTES, AST SpaceMobile ASTS and Genius Sports Limited GENI are some other top-ranked stocks that investors can consider in the broader sector. While NTES sports a Zacks Rank #1, ASTS and GENI carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of NetEase have gained 54% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Shares of AST SpaceMobile have declined 17.6% year to date. ASTS is slated to report its third-quarter 2023 results on Nov 13.
Shares of Genius Sports Limited have gained 51.3% year to date. GENI is set to report its third-quarter 2023 results on Nov 13.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NetEase, Inc. (NTES) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report
Genius Sports Limited (GENI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Datadog DDOG reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. Research & development expenses gained 12.7% on a year-over-year basis to $155.8 million, driven by increased investments in Datadog’s platform.
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Datadog DDOG reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. NetEase NTES, AST SpaceMobile ASTS and Genius Sports Limited GENI are some other top-ranked stocks that investors can consider in the broader sector.
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Datadog DDOG reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. Datadog, Inc. Price, Consensus and EPS Surprise Datadog, Inc. price-consensus-eps-surprise-chart | Datadog, Inc. Quote Quarter Details In the third quarter of 2023, Datadog had about 3,130 customers with an annual run rate (ARR) of $100K or more, up from 2,600 in the year-ago quarter.
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Datadog DDOG reported third-quarter 2023 non-GAAP earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 34 cents and increased 95.7% from the year-ago quarter. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report AST SpaceMobile, Inc. (ASTS) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for revenues was pegged at $523 million.
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2023-11-08 00:00:00 UTC
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Datadog and Tesla have been highlighted as Zacks Bull and Bear of the Day
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DDOG
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https://www.nasdaq.com/articles/datadog-and-tesla-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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For Immediate Release
Chicago, IL – November 8, 2023 – Zacks Equity Research shares Datadog DDOG as the Bull of the Day and Tesla's TSLA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Goodyear GT, TripAdvisor TRIP and Viper Energy Partners VNOM.
Here is a synopsis of all five stocks:
Bull of the Day:
Datadog, a data analytics company that makes tools for monitoring infrastructure and application performance, delivered a big beat-and-raise quarter on November 7 that caught a lot of investors off-guard.
As I write this on Tuesday morning, shares are trading 30% higher, approaching levels not seen since their gap down from $106 after an August earnings disappointment.
It appears DDOG is finally out of the dog house. And while the stock is a Zacks #2 Rank as type, I expect it to move into the upper deck soon after all the upward estimate revisions from analysts find their way into the Zacks Rank daily calculus.
Why Did the Street Get It Wrong?
There was a lot of pessimism going into this Q3 report.
And I tried to take advantage of it for my TAZR Trader group. On October 16, I published a special report for Zacks Confidential members titled "State of Threat: Cyber Crime 3.0" where I highlighted the evolving sophistication of global threat actors wreaking havoc for all kinds of companies, including most recently MGM Resorts, 23andMe, and Flagstar Bank of Michigan.
I explained how "ransom ware" attacks just went ICBM with state-sponsored infrastructure and weapons.
Here's what I wrote when I bought DDOG for my TAZR Trader group the previous week...
TAZR Portfolio is buying a starter position in Datadog (DDOG) between $85 and $90. We would add to this Zacks #1 Rank on any drop after earnings 11/7.
While DDOG is largely a data monitoring and analytics platform, Piper Sandler recently made it one of their top 5 cybersecurity picks as an end-to-end observability and cloud security platform. The Piper team has a price target for DDOG shares at $115, implying over 25% potential upside.
Data is the gold of this new digital age and we need look no further than the recent acquisition of Splunk by Cisco to see what enterprises are willing to invest to stay ahead.
Baillie Gifford Stakes a Big DDOG Claim
One of my favorite institutional Technology investors, Baillie Gifford, increased their Datadog position by 70% in Q2 to make them the 3rd largest holder, behind Vanguard and BlackRock, with over 10 million shares.
If you've seen my pieces on those Scottish Warlords of Edinburgh, you know they are buy and hold fanatics who do deep research, especially in novel technology platforms like Tesla (TSLA).
So while we can see they would have been buying DDOG shares between $60 and $90 in Q2, I don't expect to see that they turned sellers in Q3. In fact, they were probably buying again on the earnings August gap down.
Slowing Revenue Growth Priced-In
Bank of America is not as optimistic as Piper and downgraded shares to Neutral earlier this week, citing demand checks and scenario analysis suggesting downside revenue risk. They also lowered their price target to $105 from $123.
Technically, the stock has held up well since the gap down to $84 after August earnings, marking a higher low and potentially gearing up for a run to fill the gap down from $105.
And even the BofA downgrade has barely put a dent. Their "neutral" thesis and revenue concern centers around Datadog's "best-of-breed" premium service offering as being "too expensive" given potential competition. This might explain their 35% profit growth this year.
"Datadog is widely perceived to be a premium offering, which could drive the end-market to lower cost competitors, native hyperscaler offerings, and/or open-source alternatives, which could constrain revenue, RPO and billings growth," according to the BofA report.
The analysts now expect the software vendor to report 2024 revenue of $2.40 billion, down from its prior outlook of $2.57 billion. This makes DDOG trade at over 10x sales, but it offers unique solutions that should see 20%+ demand growth.
Remember, the Fortune 1000 needs all of these top "operators" to defend specific perimeters in combination.
(end of excerpt from my 10/16 Zacks Confidential report "State of Threat: Cyber Crime 3.0")
If you want a copy of that report, just email Ultimate@Zacks.com and tell 'em Cooker sent you.
Out of the Doghouse
Even days before the DDOG Q3 report, Stifel analysts were subdued about what to expect in their earnings preview...
"As we have said since our downgrade last quarter, 2024 sellside expectations (~22%) remain too high. While buyside expectations are muted into the print, we do not envision multiple expansion until revenue growth stabilizes and/or potential Fed rate cuts become clearer."
That ~22% is referring to the revenue consensus for next year. And Stifel analysts could still be right that current estimates for the company to cross $2.5 billion in 2024 are too high.
But right now, all eyes are on the notable Q3 revenue beat and lift in guidance for this year.
Q3 revenue came in at $547.5 million, up over 25% from $436.5 million a year before and ahead of the $524M consensus.
Even better, for Q4 Datadog anticipates $564 million to $568 million in revenue along with 42 cents to 44 cents in adjusted earnings per share. Analysts were looking for $545 million and 35 cents, respectively.
The company's "beat-and-raise" was driven by customer demand for better security solutions amid increasing cybersecurity threats.
Datadog management lifted their full-year 2023 revenue forecast to the range of $2.10-$2.11 billion, from a prior $2.05-$2.06 billion.
And they see adjusted (non-GAAP) earnings between $1.52 and $1.54 per share, up from $1.30-$1.34 per share expected earlier.
Datadog's total number of new and existing customers with annual recurring revenue (ARR) of $100,000 or more rose 20% year-over-year to 3,130.
The Year Ahead
While investors now have renewed optimism in the near term, we still don't know what 2024 looks like.
But we'll get a much better idea in the coming days as analysts rework their models and projections for demand and growth. Be sure to check the Zacks Detailed Estimates page for DDOG to see the upward revisions as they filter in.
"Companies across all industries and sizes are building cloud applications and services to deliver positive business outcomes, including more users, higher revenue growth, improved productivity, and cost savings," said Datadog CEO Olivier Pomel.
In sympathy with Pomel's outlook, other data-centric operations platforms like Snowflake and MongoDB were up 10-12% Tuesday morning.
And now, DDOG is recognized even more as the go-to hound for cybersecurity.
If Datadog shares have any kind of pullback to fill the gap up from $80, I would be a buyer. But I doubt it gets below Tuesday's low near $96 so you better move fast.
Disclosure: I own shares of DDOG for the Zacks TAZR Trader portfolio.
Bear of the Day:
Tesla's 10 consecutive quarter streak of Wall Street beats snapped as it reported lower-than-expected earnings for the third quarter of 2023.
Based on this report delivered three weeks ago, Wall Street analysts have steadily lowered their growth estimates, pushing TSLA into the cellar of the Zacks Rank.
The electric vehicle (EV) behemoth reported earnings per share of 66 cents for the quarter under review, which declined from the year-ago figure of $1.05 and also missed the Zacks Consensus Estimate of 72 cents.
Throughout the third quarter, Tesla slashed prices on its inventory vehicles and existing models, which have adversely impacted profits. Total revenues came in at $23,350 million, witnessing year-over-year growth of 9%.
The top line, however, fell short of the consensus mark of $24,381 million.
Tesla's operating margins dipped 964 basis points year over year to 7.6% in the quarter under discussion and also lagged our estimate of 7.9%. The underperformance can be attributed to the high costs involved in scaling up the production of new battery cells, the Cybertruck, and other large projects.
Continued reductions in average selling prices (ASPs) for models also weighed significantly on the margins.
Tesla has been offering discounts and other incentives in the United States to increase affordability and boost deliveries. Notably, all trims of the Model 3/Y vehicles qualify for the full $7,500 federal tax credit under the Inflation Reduction Act in the United States.
Nevertheless, even with these measures, Tesla's share of the EV market in the United States decreased from 60% in the first quarter to 50% in the third quarter, according to data from Kelley Blue Book.
Management stuck to its target of around 50% growth in deliveries in the foreseeable future. For 2023, it expects deliveries to reach 1.8 million units.
Key Takeaways
Tesla's third-quarter production totaled 430,488 units (416,800 Model 3/Y, and 13,688 Model S/X), up 18% year over year and surpassing our estimate of 415,645 units. The company delivered 435,059 vehicles, reflecting a year-over-year rise of 27% and topping our estimate of 428,141 units.
The Model 3/Y registered deliveries of 419,074 vehicles, marking year-over-year growth of 29% and outpacing our projection by 7,999 units. Deliveries of the Model S/X totaled 13,688 units, down 31% from the year-ago levels and below our estimate of 17,066 units.
Total automotive revenues of $19,625 million were up 5% year over year and beat our estimate of $21,092 million. The reported figure also included $554 million from the sale of regulatory credits for electric vehicles, which increased 93.7% year over year.
Automotive sales, excluding revenues from leasing and regulatory credits, totaled $18,582 million, missing our projection of $19,949 million on lower-than-expected ASPs.
Automotive gross profit came in at $3,668 million. Automotive gross margin came in at 18.6%, down from 27.9% reported in third-quarter 2022 but topping our forecast of 18.2%. This can be attributed to lower-than-expected cost of automotive sales. The metric came in at 15,957 million, below our projection of 17.256 million.
Energy Generation and Storage revenues came in at $1,599 million in third-quarter 2023, higher than the year-ago quarter's figure of $1,117 million and beating our estimate of $1,570 million.
Notably, energy storage deployments increased 90% year over year to 4 GWh, thanks to the ramp-up of the Megapack factory in California, but also topped our projection of 3.86 GWh.
Solar deployments, however, declined both on a sequential and yearly basis amid high interest rates and the end of net metering in California. The metric came in at 49 MW, lower than our forecast of 103.8 MW.
Services and Other revenues were $2,166 million, up 31.6% year over year but missing our estimate of $2,351 million. Supercharging, insurance and body shop & part sales drove growth on a year-over-year basis.
Financials
Tesla had cash and cash equivalents of $26,077 million as of Sep 30, 2023, compared with $22,185 million on Dec 31, 2022. Net cash provided by operating activities amounted to $3,308 million in third-quarter 2023. Capital expenditure totaled $2,460 million in the quarter under review.
Tesla generated a free cash flow ("FCF") of $848 million during the reported quarter, which declined from $3,297 million generated in the year-ago period. Long-term debt and finance leases, net of the current portion, totaled $2,426 million, up from $1,597 million on Dec 31, 2022.
Key Metrics
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Tesla performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total vehicle deliveries: 435,059 versus 439,208 estimated by seven analysts on average.
Model S/X deliveries: 15,985 compared to the 16,872 average estimate based on five analysts.
Model 3/Y deliveries: 419,074 versus 425,039 estimated by four analysts on average.
Solar deployed: 49 MW compared to the 84.83 MW average estimate based on two analysts.
Storage deployed: 3,980 MWh versus the two-analyst average estimate of 3,926.66 MWh.
Revenues- Energy generation and storage: $1.56 billion versus the eight-analyst average estimate of $1.63 billion. The reported number represents a year-over-year change of +39.6%.
Revenues- Automotive sales: $18.58 billion versus the eight-analyst average estimate of $20.61 billion.
Revenues- Services and other: $2.17 billion compared to the $2.19 billion average estimate based on seven analysts. The reported number represents a change of +31.7% year over year.
Revenues- Automotive regulatory credits: $554 million compared to the $324.93 million average estimate based on five analysts. The reported number represents a change of +93.7% year over year.
Revenues- Automotive leasing: $489 million versus the five-analyst average estimate of $597.34 million. The reported number represents a year-over-year change of -21.3%.
Total Automotive Revenue: $19.63 billion versus the four-analyst average estimate of $19.42 billion. The reported number represents a year-over-year change of +5%.
Gross profit- Total Automotive: $3.67 billion versus the six-analyst average estimate of $3.80 billion.
Bottom line: As Tesla plans to dominate the EV market by slashing prices on its vehicles, this trend may end next year and the margins bottom. Until then, investors remain cautious about a turnaround.
The Zacks Rank will let you know.
Additional content:
Time to Buy These Affordable Top-Rated Stocks After Earnings
Finding affordable stocks that won't break the bank but have the potential to be viable investments is not always easy.
However, following their strong third quarter results on Monday here are several top-rated Zacks stocks that are appealing in this regard.
Goodyear
Sporting a Zacks Rank #2 (Buy) Goodyear Tire's stock is up roughly +3% after crushing third quarter earnings expectations after market hours on Monday.
Earnings of $0.36 per share crushed Q3 estimates of $0.17 a share by 112% despite sales of $5.14 billion slightly missing estimates of $5.15 billion. Goodyear attributed the favorable bottom-line results to a reduction in raw material costs which is starting to make GT shares look enticing at around $12.
This is starting to correlate with an anticipated rebound in Goodyear's fiscal 2024 earnings which are projected at $1.30 per share and further suggests GT shares may be undervalued at the moment. Adjusting to a high inflationary environment, Goodyear's stock has now rebounded and soared +23% year to date.
TripAdvisor
Boasting a Zacks Rank #1 (Strong Buy), TripAdvisor's stock has spiked +11% today after the online travel company reassuringly surpassed Q3 top and bottom line expectations.
Third quarter earnings of $0.52 per share came in 8% better than expected with sales of $533 million topping estimates by 5%. More impressive, TripAdvisor's earnings climbed 85% from $0.28 a share in the prior year quarter with sales rising 16% year over year.
Trading at $17 a share TripAdvisor's stock performance is virtually flat for the year after this morning's rally. Still, the plausibility of more upside looks likely as TRIP trades reasonably at 15.2X forward earnings with 40% EPS growth now expected in FY23 and FY24.
Viper Energy Partners
Rounding out the list is Viper Energy Partners which sports a Zacks Rank #2 (Buy). Viper Energy's stock has popped +5% in today's trading session after the variable distribution Master Limited Partnership (MLP) blasted Q3 estimates after market hours on Monday as well.
Driven by higher crude oil prices, Q3 earnings of $1.10 per share beat expectations of $0.46 a share by 139%. On the top line, sales of $293.24 billion surpassed Q3 estimates of $196.36 billion by 49%. Notably, Viper Energy has largely surpassed earnings expectations in its last four quarterly reports posting a very stellar average earnings surprise of 92%.
Viper Energy's stock trades at $29 a share and is down -7% YTD but the company's earnings outlook continues to strengthen with annual EPS estimates up sharply in the last 30 days. The trend looks set to continue and strong Q3 results offered support to Viper Energy's 14X forward earnings multiple with it also noteworthy that VNOM offers a generous 3.83% dividend yield.
Bottom Line
After impressive quarterly results, the affordable price tags of Goodyear, TripAdvisor, and Viper Energy Partners' stock are very intriguing. Building meaningful positions without breaking the bank may start to pay off as their earnings outlook continues to strengthen which is indicative of more upside.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
Datadog, Inc. (DDOG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – November 8, 2023 – Zacks Equity Research shares Datadog DDOG as the Bull of the Day and Tesla's TSLA as the Bear of the Day. It appears DDOG is finally out of the dog house. Here's what I wrote when I bought DDOG for my TAZR Trader group the previous week...
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Click to get this free report The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Viper Energy Partners LP (VNOM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 8, 2023 – Zacks Equity Research shares Datadog DDOG as the Bull of the Day and Tesla's TSLA as the Bear of the Day. It appears DDOG is finally out of the dog house.
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Click to get this free report The Goodyear Tire & Rubber Company (GT) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report Viper Energy Partners LP (VNOM) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – November 8, 2023 – Zacks Equity Research shares Datadog DDOG as the Bull of the Day and Tesla's TSLA as the Bear of the Day. It appears DDOG is finally out of the dog house.
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For Immediate Release Chicago, IL – November 8, 2023 – Zacks Equity Research shares Datadog DDOG as the Bull of the Day and Tesla's TSLA as the Bear of the Day. It appears DDOG is finally out of the dog house. Here's what I wrote when I bought DDOG for my TAZR Trader group the previous week...
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2023-11-08 00:00:00 UTC
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JP Morgan Upgrades Datadog Inc - (DDOG)
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DDOG
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https://www.nasdaq.com/articles/jp-morgan-upgrades-datadog-inc-ddog
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Fintel reports that on November 8, 2023, JP Morgan upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight .
Analyst Price Forecast Suggests 3.60% Upside
As of October 31, 2023, the average one-year price target for Datadog Inc - is 105.88. The forecasts range from a low of 70.70 to a high of $139.65. The average price target represents an increase of 3.60% from its latest reported closing price of 102.20.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Datadog Inc - is 2,262MM, an increase of 12.64%. The projected annual non-GAAP EPS is 1.20.
For more in-depth coverage of Datadog Inc -, view the free, crowd-sourced company research report on Finpedia.
What is the Fund Sentiment?
There are 1284 funds or institutions reporting positions in Datadog Inc -. This is an increase of 30 owner(s) or 2.39% in the last quarter. Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 15.89%. Total shares owned by institutions increased in the last three months by 0.55% to 251,538K shares.
The put/call ratio of DDOG is 1.16, indicating a bearish outlook.
What are Other Shareholders Doing?
Baillie Gifford holds 10,392K shares representing 3.20% ownership of the company. In it's prior filing, the firm reported owning 6,095K shares, representing an increase of 41.35%. The firm increased its portfolio allocation in DDOG by 117.49% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,327K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 8,142K shares, representing an increase of 2.22%. The firm increased its portfolio allocation in DDOG by 27.76% over the last quarter.
ICONIQ Capital holds 7,817K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 13,176K shares, representing a decrease of 68.55%. The firm increased its portfolio allocation in DDOG by 188.67% over the last quarter.
Wcm Investment Management holds 6,292K shares representing 1.94% ownership of the company. In it's prior filing, the firm reported owning 6,204K shares, representing an increase of 1.40%. The firm decreased its portfolio allocation in DDOG by 7.71% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 6,180K shares representing 1.90% ownership of the company. In it's prior filing, the firm reported owning 6,139K shares, representing an increase of 0.66%. The firm increased its portfolio allocation in DDOG by 30.85% over the last quarter.
Datadog Background Information
(This description is provided by the company.)
Datadog is the monitoring and security platform for cloud applications. Its SaaS platform integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of its customers' entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior and track key business metrics.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on November 8, 2023, JP Morgan upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 15.89%. The put/call ratio of DDOG is 1.16, indicating a bearish outlook.
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Fintel reports that on November 8, 2023, JP Morgan upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 15.89%. The put/call ratio of DDOG is 1.16, indicating a bearish outlook.
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Fintel reports that on November 8, 2023, JP Morgan upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 15.89%. The put/call ratio of DDOG is 1.16, indicating a bearish outlook.
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Fintel reports that on November 8, 2023, JP Morgan upgraded their outlook for Datadog Inc - (NASDAQ:DDOG) from Neutral to Overweight . Average portfolio weight of all funds dedicated to DDOG is 0.51%, an increase of 15.89%. The put/call ratio of DDOG is 1.16, indicating a bearish outlook.
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8eab1cb7-a122-4539-a13e-6d8eecfe6f03
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717999.0
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2023-11-07 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq score longest win streak in 2 years on rates view
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DDOG
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-score-longest-win-streak-in-2-years-on-rates-view
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers keep focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90%
Updated at 4:10 p.m. ET/1910 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Markets are pricing in a 90.2% chance the Fed will once again hold rates steady at its December policy meeting, up from 68.9% a week ago, according to CME's FedWatch Tool.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.1%, Apple AAPL.O, up 1.5%, and Amazon, which gained 2.1% as the biggest boosts to both the S&P 500 and Nasdaq.
The Dow Jones Industrial Average .DJI rose 56.94 points, or 0.17%, to 34,152.8; the S&P 500 .SPX gained 12.40 points, or 0.28 %, at 4,378.38 and the Nasdaq Composite .IXICadded 121.08 points, or 0.90 %, at 13,639.86.
The S&P 500 .SPX scored its seventh straight day in the green, with the Nasdaq .IXIC recording its eighth straight advance, the longest such streak for each index in two years. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
Energy .SPNY, the worst performing sector on the session, fell 2.2% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Dallas Federal Reserve Bank President Lorie Logan also chimed in, saying that while she supported leaving the Fed's policy rate on hold last week to assess if financial conditions are sufficiently tight to bring down inflation, it still remains too high.
Uber TechnologiesUBER.N rose 3.7% as the ride-hailing firm projected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers by a 1.2-to-1 ratio on the NYSE, while on the Nasdaq declining issues outnumbered advancers by a 1.1-to-1 ratio.
The S&P 500 posted 15 new 52-week highs and three new lows while the Nasdaq recorded 48 new highs and 145 new lows.
Volume on U.S. exchanges was 10.08 billion shares, compared with the 10.94 billion average for the full session over the last 20 trading days.
(Reporting by Chuck Mikolajczak; Editing by Richard Chang)
((charles.mikolajczak@tr.com; @ChuckMik;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
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DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. The Dow gained for a seventh straight session, its longest since a 13-session run in July.
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DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
|
DatadogDDOG.O surged 28% after raising its forecast for annual adjusted profit and revenue. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers keep focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Dow up 0.17%, S&P 500 up 0.28%, Nasdaq up 0.90% Updated at 4:10 p.m. ET/1910 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle.
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6c9eb52d-a780-4e12-874f-b0f8b1a89cce
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