In the latest close session, Datadog (DDOG) was up +2.2% at $132.14. The stock outperformed the S&P 500, which registered a daily gain of 1.05%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.64%.
The data analytics and cloud monitoring company’s stock has climbed by 5.48% in the past month, falling short of the Computer and Technology sector’s gain of 12.58% and the S&P 500’s gain of 8.59%.
Market participants will be closely following the financial results of Datadog in its upcoming release. The company plans to announce its earnings on May 7, 2026. The company is expected to report EPS of $0.5, up 8.7% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $956.97 million, indicating a 25.66% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.12 per share and a revenue of $4.08 billion, representing changes of +3.41% and +19.17%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Datadog. Recent revisions tend to reflect the latest near-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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Datadog is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Datadog is holding a Forward P/E ratio of 60.9. This indicates a premium in contrast to its industry’s Forward P/E of 19.2.
Meanwhile, DDOG’s PEG ratio is currently 5.27. 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. Internet – Software stocks are, on average, holding a PEG ratio of 1.13 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 37% of all 250+ industries.
