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Datadog (DDOG) Beats Stock Market Upswing: What Investors Need to Know

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In the latest trading session, Datadog (DDOG - Free Report) closed at $146.56, marking a +1.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.7%, and the Nasdaq, a tech-heavy index, added 0.18%.

Shares of the data analytics and cloud monitoring company witnessed a gain of 10.56% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.22%, and the S&P 500's gain of 5.71%.

Investors will be eagerly watching for the performance of Datadog in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 7, 2025. The company is forecasted to report an EPS of $0.41, showcasing a 4.65% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $790.78 million, up 22.55% from the year-ago period.

DDOG's full-year Zacks Consensus Estimates are calling for earnings of $1.7 per share and revenue of $3.23 billion. These results would represent year-over-year changes of -6.59% and +20.47%, respectively.

It is also important to note the recent changes to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, there's been a 0.6% rise in the Zacks Consensus EPS estimate. Datadog currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Datadog has a Forward P/E ratio of 84.74 right now. This signifies a premium in comparison to the average Forward P/E of 29.49 for its industry.

Investors should also note that DDOG has a PEG ratio of 10.5 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 currently had an average PEG ratio of 2.22 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow DDOG in the coming trading sessions, be sure to utilize Zacks.com.


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