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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
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Datadog (DDOG - Free Report) closed the most recent trading day at $254.79, moving -3.2% from the previous trading session. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
The data analytics and cloud monitoring company's shares have seen an increase of 18.9% over the last month, surpassing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company is forecasted to report an EPS of $0.58, showcasing a 26.09% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.08 billion, indicating a 30.22% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.41 per share and a revenue of $4.34 billion, representing changes of +17.56% and +26.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 109.05. This represents a premium compared to its industry average Forward P/E of 19.97.
It is also worth noting that DDOG currently has a PEG ratio of 7.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Image: Bigstock
Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know
Datadog (DDOG - Free Report) closed the most recent trading day at $254.79, moving -3.2% from the previous trading session. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
The data analytics and cloud monitoring company's shares have seen an increase of 18.9% over the last month, surpassing the Computer and Technology sector's loss of 6.6% and the S&P 500's loss of 0.63%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company is forecasted to report an EPS of $0.58, showcasing a 26.09% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.08 billion, indicating a 30.22% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.41 per share and a revenue of $4.34 billion, representing changes of +17.56% and +26.62%, respectively, from the prior year.
Any recent changes to analyst estimates for Datadog should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Datadog is currently exchanging hands at a Forward P/E ratio of 109.05. This represents a premium compared to its industry average Forward P/E of 19.97.
It is also worth noting that DDOG currently has a PEG ratio of 7.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.1 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.