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Datadog (DDOG) Gains But Lags Market: What You Should Know

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Datadog (DDOG - Free Report) closed the most recent trading day at $68.10, moving +0.55% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 5.16%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had lost 11.49% over the past month. This has lagged the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 0.27% in that time.

Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.23 per share, which would represent a year-over-year decline of 4.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $468.13 million, up 28.95% from the year-ago period.

DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.05 per share and revenue of $2.08 billion. These results would represent year-over-year changes of +7.14% and +24.36%, respectively.

Investors might also notice recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection has moved 7.05% lower. Datadog is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Datadog currently has a Forward P/E ratio of 64.4. This valuation marks a premium compared to its industry's average Forward P/E of 43.07.

We can also see that DDOG currently has a PEG ratio of 1.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DDOG's industry had an average PEG ratio of 1.65 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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