Datadog (DDOG) closed the latest trading day at $138.40, indicating a +1.18% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Shares of the data analytics and cloud monitoring company witnessed a loss of 6.9% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.13% and the S&P 500's loss of 2.14%.

Market participants will be closely following the financial results of Datadog in its upcoming release. The company is predicted to post an EPS of $0.43, indicating a 2.27% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $711.65 million, up 20.69% from the prior-year quarter.

Investors should also take note of any recent adjustments to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.28% downward. At present, Datadog boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 70.62. This expresses a premium compared to the average Forward P/E of 29.68 of its industry.

It is also worth noting that DDOG currently has a PEG ratio of 4.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.16.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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