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Datadog (DDOG) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Datadog (DDOG) closed at $146.33, marking a -1.53% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Heading into today, shares of the data analytics and cloud monitoring company had lost 7.58% over the past month, lagging the Computer and Technology sector's loss of 4.59% and the S&P 500's gain of 0.12% in that time.

Wall Street will be looking for positivity from Datadog as it approaches its next earnings report date. On that day, Datadog is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $291.17 million, up 64.01% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Datadog. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Datadog is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Datadog currently has a Forward P/E ratio of 279.79. This valuation marks a premium compared to its industry's average Forward P/E of 57.18.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.

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


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Datadog, Inc. (DDOG): Free Stock Analysis Report
 
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