These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar

Zacks identifies Datadog and Lattice Semiconductor as potential earnings-beat candidates based on positive Earnings ESPs. Datadog has a #3 (Hold) rank, a $0.65 most accurate estimate versus $0.64 consensus, and +0.35% ESP ahead of its November 4, 2026 report; Lattice has a #1 (Strong Buy) rank, a $0.66 estimate versus $0.64 consensus, and +3.32% ESP ahead of its February 9, 2027 report. These are predictions, not reported results; Zacks says its positive-ESP plus rank methodology produced positive surprises 70% of the time in its cited backtest.

Analysis

The signal is much weaker than the promotional framing implies: a small positive revision gap is not evidence of a durable earnings edge, and a reported beat can still sell off if forward guidance or the implied bar disappoints. For Datadog, with the report imminent, the key question is whether customer usage and expansion support the forward outlook—not whether quarterly EPS clears a consensus that is only marginally below the latest estimate. Observability competition from Dynatrace, Elastic, and cloud-native offerings makes usage growth and retention more informative than the headline beat. The immediate risk is event-driven multiple compression if guidance disappoints; over the next 1–3 months, revisions and customer-spending commentary matter more than this one estimate spread.

Lattice Semiconductor’s larger gap is not yet a tradable near-term catalyst: its February report is roughly three months away, leaving substantial time for estimates and demand expectations to move. A positive surprise would matter more if it reflects sustained demand across end markets rather than timing or mix; the competing risk is that cyclical semiconductor expectations reset before the report. The article supplies no independent evidence on estimate dispersion, valuation, positioning, or subsequent guidance, so the Zacks backtest should not be treated as a company-specific probability or return forecast. Structural upside for Lattice depends on design wins converting into durable shipments; that is a 6–18 month question, not established by this indicator.

Key Decisions for Investors

• Datadog: Avoid initiating a pre-earnings directional position on a +0.35% estimate gap alone. If already long, size to tolerate an adverse post-print move; reassess after the call using forward growth, usage, and retention commentary.
• Datadog: Treat a beat without firm forward guidance as a potential sell-the-news outcome. Falsify the cautious stance only if the report and call support sustained demand and analysts subsequently raise forward estimates.
• Lattice: Put on a watchlist, not an earnings trade. Recheck estimate revisions and end-market commentary closer to the February report; the current gap can decay or reverse over the intervening months.
• Across both names, do not infer a 70% company-specific beat probability from the cited screen statistic. The missing inputs are estimate dispersion, historical company-level revision accuracy, valuation/positioning, and the market’s implied earnings move.