Back to top

Image: Bigstock

Datadog (DDOG) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

In the latest trading session, Datadog (DDOG - Free Report) closed at $138.21, marking a +1.15% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, added 0.91%.

Coming into today, shares of the data analytics and cloud monitoring company had lost 0.94% in the past month. In that same time, the Computer and Technology sector gained 0.49%, while the S&P 500 gained 0.38%.

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 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. Our most recent consensus estimate is calling for quarterly revenue of $914.6 million, up 23.97% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.02 per share and revenue of $3.39 billion, which would represent changes of +10.99% and 0%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Datadog. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.48% higher within the past month. Right now, Datadog possesses a Zacks Rank of #4 (Sell).

With respect to valuation, Datadog is currently being traded at a Forward P/E ratio of 60.19. Its industry sports an average Forward P/E of 24.04, so one might conclude that Datadog is trading at a premium comparatively.

It's also important to note that DDOG currently trades at a PEG ratio of 5.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.42 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Published in