The most recent trading session ended with Datadog (DDOG) standing at $140.20, reflecting a +0.06% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.

The data analytics and cloud monitoring company's shares have seen a decrease of 5.58% over the last month, not keeping up with the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 2.69%.

Market participants will be closely following the financial results of Datadog in its upcoming release. The company is expected to report EPS of $0.43, down 2.27% from the prior-year quarter. 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 typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.35% upward. Datadog is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 71.96. Its industry sports an average Forward P/E of 29.37, so one might conclude that Datadog is trading at a premium comparatively.

Meanwhile, DDOG's PEG ratio is currently 4.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DDOG's industry had an average PEG ratio of 2.27 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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