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Datadog (DDOG) Laps the Stock Market: Here's Why

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In the latest trading session, Datadog (DDOG - Free Report) closed at $156.30, marking a +2.24% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.

Prior to today's trading, shares of the data analytics and cloud monitoring company had gained 10.12% outpaced the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.

The upcoming earnings release of Datadog will be of great interest to investors. The company's earnings report is expected on November 6, 2025. The company's earnings per share (EPS) are projected to be $0.45, reflecting a 2.17% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $849.77 million, indicating a 23.15% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $1.84 per share and a revenue of $3.32 billion, demonstrating changes of +1.1% and +23.65%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Datadog. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Datadog possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 83.17. This expresses a premium compared to the average Forward P/E of 29.15 of its industry.

Meanwhile, DDOG's PEG ratio is currently 9.93. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.91.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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