Datadog (DDOG) closed the most recent trading day at $101.47, moving +1.88% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.

Coming into today, shares of the data analytics and cloud monitoring company had lost 5.01% in the past month. In that same time, the Computer and Technology sector lost 6.23%, while the S&P 500 lost 4.77%.

The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2025. The company's upcoming EPS is projected at $0.42, signifying a 4.55% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $739.37 million, indicating a 20.96% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.68 per share and a revenue of $3.19 billion, representing changes of -7.69% and +18.7%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. Datadog is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 59.12 right now. This represents a premium compared to its industry's average Forward P/E of 25.94.

We can additionally observe that DDOG currently boasts a PEG ratio of 7.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DDOG's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250.

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.

To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.

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Datadog, Inc. (DDOG) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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