DigitalOcean Holdings, Inc. (DOCN) Declines More Than Market: Some Information for Investors
In the latest market close, DigitalOcean Holdings, Inc. (DOCN) reached $20.68, with a -1.76% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.18%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.76%.
Heading into today, shares of the company had lost 9.81% over the past month, lagging the Computer and Technology sector's loss of 2.96% and the S&P 500's loss of 3.35% in that time.
Analysts and investors alike will be keeping a close eye on the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. It is anticipated that the company will report an EPS of $0.36, marking a 5.26% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $173.57 million, up 14.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.42 per share and a revenue of $684.3 million, representing changes of +51.06% and +18.73%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DigitalOcean Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 24.66% downward. DigitalOcean Holdings, Inc. presently features a Zacks Rank of #4 (Sell).
In terms of valuation, DigitalOcean Holdings, Inc. is presently being traded at a Forward P/E ratio of 14.79. For comparison, its industry has an average Forward P/E of 35.52, which means DigitalOcean Holdings, Inc. is trading at a discount to the group.
Also, we should mention that DOCN has a PEG ratio of 0.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.4 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
