11 Best Predictive Analytics Stocks to Buy According to Analysts

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1. Datadog, Inc. (NASDAQ:DDOG)

Analysts’ Upside: 46.87%

Number of Hedge Fund Holders: 83

Datadog, Inc. (NASDAQ:DDOG) is a software company that provides an observability solution built for cloud-scale applications, monitoring servers, databases, tools, and services via its SaaS-based data analytics platform. The company’s tools serve as information technology monitoring and analytics solutions that allow for the examination of performance indicators and event tracking for cloud services.

Datadog, Inc. (NASDAQ:DDOG) posted outstanding Q4 2024 financial results, with revenues of $738 million, up 25% year on year. The company earned $265 million in operational cash flow and $241 million in free cash flow, resulting in a strong balance sheet of $4.2 billion.

On March 4, Needham analysts reiterated their Buy rating and $160 price target for DDOG shares. The endorsement follows recent meetings with two Datadog partners, who demonstrated continued growth in the company’s commercial operations through the first quarter of 2025. Needham analysts highlighted the launch of new products, such as LLM Observability, which add value to Datadog’s portfolio and improve the appeal of its core goods.

While we acknowledge the potential of DDOG as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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