In the latest market close, Datadog (DDOG) reached $129.07, with a -1.81% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.32%. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.35%.

Coming into today, shares of the data analytics and cloud monitoring company had gained 6.35% in the past month. In that same time, the Computer and Technology sector lost 1.9%, while the S&P 500 lost 2%.

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 7, 2024. The company is expected to report EPS of $0.34, up 21.43% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $589.97 million, showing a 22.47% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.42 per share and a revenue of $2.57 billion, demonstrating changes of +7.58% and +20.73%, respectively, from the preceding year.

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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Datadog presently features a Zacks Rank of #4 (Sell).

Looking at its valuation, Datadog is holding a Forward P/E ratio of 92.8. For comparison, its industry has an average Forward P/E of 29.07, which means Datadog is trading at a premium to the group.

Meanwhile, DDOG's PEG ratio is currently 10.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.73.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 65, placing it within the top 26% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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