The most recent trading session ended with Datadog (DDOG) standing at $101.06, reflecting a +1.86% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.87%.

The the stock of data analytics and cloud monitoring company has fallen by 12.34% in the past month, lagging the Computer and Technology sector's loss of 8.94% and the S&P 500's loss of 5.59%.

The investment community will be closely monitoring the performance of Datadog in its forthcoming earnings report. The company is forecasted to report an EPS of $0.42, showcasing a 4.55% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $739.51 million, reflecting a 20.98% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and revenue of $3.19 billion, which would represent changes of -7.14% and +18.85%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Datadog. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10.65% lower. Right now, Datadog possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 58.82. This denotes a premium relative to the industry's average Forward P/E of 26.28.

Investors should also note that DDOG has a PEG ratio of 7.02 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.01 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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

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