In the latest trading session, Datadog (DDOG) closed at $119.66, marking a -7.28% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.84%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
Shares of the data analytics and cloud monitoring company have depreciated by 3.43% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.75%, and the S&P 500's gain of 1.8%.
The investment community will be paying close attention to the earnings performance of Datadog in its upcoming release. The company is slated to reveal its earnings on February 10, 2026. The company is forecasted to report an EPS of $0.55, showcasing a 12.24% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $914.6 million, showing a 23.97% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.02 per share and revenue of $3.39 billion, indicating changes of +10.99% and 0%, respectively, compared to the previous 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.48% higher. Datadog currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Datadog is presently being traded at a Forward P/E ratio of 56.85. This expresses a premium compared to the average Forward P/E of 22.25 of its industry.
Investors should also note that DDOG has a PEG ratio of 4.92 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.24 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Datadog, Inc. (DDOG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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