Today we're going to take a look at the well-established Datadog, Inc. (NASDAQ:DDOG). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$136 at one point, and dropping to the lows of US$112. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Datadog's current trading price of US$122 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Datadog's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Is Datadog Still Cheap?
Good news, investors! Datadog is still a bargain right now. According to our valuation, the intrinsic value for the stock is $176.98, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Datadog's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Datadog generate?
NasdaqGS:DDOG Earnings and Revenue Growth March 20th 2024
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to more than double over the next couple of years, the future seems bright for Datadog. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since DDOG is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on DDOG for a while, now might be the time to make a leap. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy DDOG. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
If you'd like to know more about Datadog as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Datadog you should know about.
If you are no longer interested in Datadog, you can use our free platform to see our list of over 50 other stocks with a high growth potential.