In the latest trading session, Datadog (DDOG) closed at $88.20, marking a +0.31% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.23% for the day. Meanwhile, the Dow experienced a drop of 0.91%, and the technology-dominated Nasdaq saw an increase of 0.1%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 19.79% over the past month. This has lagged the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13% in that time.

Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.42, marking a 4.55% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $739.51 million, up 20.98% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.69 per share and a revenue of $3.19 billion, representing changes of -7.14% and +18.85%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. Recent revisions tend to reflect the latest 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.65% lower. Right now, Datadog possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Datadog is currently trading at a Forward P/E ratio of 52.13. This expresses a premium compared to the average Forward P/E of 23.71 of its industry.

Investors should also note that DDOG has a PEG ratio of 6.22 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.77.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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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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