Datadog (DDOG) ended the recent trading session at $144.83, demonstrating a +0.84% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.26%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.77%.

Coming into today, shares of the data analytics and cloud monitoring company had lost 12.07% in the past month. In that same time, the Computer and Technology sector gained 0.84%, while the S&P 500 lost 2.82%.

Market participants will be closely following the financial results of Datadog in its upcoming release. It is anticipated that the company will report an EPS of $0.43, marking a 2.27% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $711.65 million, reflecting a 20.69% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Datadog should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Datadog is at present trading with a Forward P/E ratio of 74.12. This valuation marks a premium compared to its industry's average Forward P/E of 27.87.

We can also see that DDOG currently has a PEG ratio of 4.98. 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. The Internet - Software industry had an average PEG ratio of 2.04 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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