In the latest market close, Datadog (DDOG) reached $116.23, with a +1.28% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.15%.

The data analytics and cloud monitoring company's shares have seen a decrease of 2.11% over the last month, not keeping up with the Computer and Technology sector's loss of 0.02% and the S&P 500's gain of 2%.

Market participants will be closely following the financial results of Datadog in its upcoming release. In that report, analysts expect Datadog to post earnings of $0.39 per share. This would mark a year-over-year decline of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $662.55 million, up 21% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.63 per share and a revenue of $2.63 billion, signifying shifts of +23.48% and +23.4%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% increase. Datadog is currently a Zacks Rank #2 (Buy).

In terms of valuation, Datadog is presently being traded at a Forward P/E ratio of 70.25. This indicates a premium in contrast to its industry's Forward P/E of 31.32.

One should further note that DDOG currently holds a PEG ratio of 7.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DDOG's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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