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Datadog (DDOG) Stock Moves -0.48%: What You Should Know

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In the latest trading session, Datadog (DDOG - Free Report) closed at $110.70, marking a -0.48% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.54%.

Heading into today, shares of the data analytics and cloud monitoring company had gained 6.37% over the past month, outpacing the Computer and Technology sector's gain of 2.05% and the S&P 500's gain of 3.05% in that time.

Wall Street will be looking for positivity from DDOG as it approaches its next earnings report date. This is expected to be August 5, 2021. In that report, analysts expect DDOG to post earnings of $0.03 per share. This would mark a year-over-year decline of 40%. Meanwhile, our latest consensus estimate is calling for revenue of $212.09 million, up 51.48% from the prior-year quarter.

DDOG's full-year Zacks Consensus Estimates are calling for earnings of $0.16 per share and revenue of $882.59 million. These results would represent year-over-year changes of -27.27% and +46.25%, respectively.

It is also important to note the recent changes to analyst estimates for DDOG. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.87% higher. DDOG is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, DDOG is currently trading at a Forward P/E ratio of 695.19. This represents a premium compared to its industry's average Forward P/E of 70.24.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 189, which puts it in the bottom 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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