DigitalOcean Holdings, Inc. (DOCN) Beats Stock Market Upswing: What Investors Need to Know
DigitalOcean Holdings, Inc. (DOCN) closed at $33.14 in the latest trading session, marking a +1.5% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
Prior to today's trading, shares of the company had lost 14.42% over the past month. This has lagged the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48% in that time.
The upcoming earnings release of DigitalOcean Holdings, Inc. will be of great interest to investors. The company's earnings report is expected on February 21, 2024. The company is predicted to post an EPS of $0.37, indicating a 32.14% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $178.25 million, indicating a 9.36% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for DigitalOcean Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.48% lower. DigitalOcean Holdings, Inc. is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that DigitalOcean Holdings, Inc. has a Forward P/E ratio of 20.91 right now. This valuation marks a discount compared to its industry's average Forward P/E of 34.62.
It's also important to note that DOCN currently trades at a PEG ratio of 0.67. 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 1.78 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DOCN in the coming trading sessions, be sure to utilize Zacks.com.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
