Datadog (DDOG) Flat As Market Gains: What You Should Know

Datadog (DDOG) closed at $144.85 in the latest trading session, marking no change from the prior day. The stock's change was less than the S&P 500's daily gain of 0.36%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.51%.

The data analytics and cloud monitoring company's shares have seen an increase of 2.09% over the last month, surpassing the Computer and Technology sector's of 0% and falling behind the S&P 500's gain of 2.11%.

Analysts and investors alike will be keeping a close eye on the performance of Datadog in its upcoming earnings disclosure. The company's earnings report is set to go public on February 13, 2025. In that report, analysts expect Datadog to post earnings of $0.43 per share. This would mark a year-over-year decline of 2.27%. Our most recent consensus estimate is calling for quarterly revenue of $711.65 million, up 20.69% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. As of now, Datadog holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 74.39. This valuation marks a premium compared to its industry's average Forward P/E of 31.23.

We can also see that DDOG currently has a PEG ratio of 5. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.34 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% of all 250+ industries.

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