Datadog (DDOG) ended the recent trading session at $126.37, demonstrating a -0.18% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.26%.

Shares of the data analytics and cloud monitoring company have appreciated by 10.86% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.21% and the S&P 500's gain of 2%.

Market participants will be closely following the financial results of Datadog in its upcoming release. The company plans to announce its earnings on November 7, 2024. The company is expected to report EPS of $0.39, down 13.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $662.55 million, up 21% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.64 per share and a revenue of $2.63 billion, signifying shifts of +24.24% and +23.4%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Datadog currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Datadog currently has a Forward P/E ratio of 77.19. This indicates a premium in contrast to its industry's Forward P/E of 31.88.

Investors should also note that DDOG has a PEG ratio of 5.92 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.1.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.