DigitalOcean Holdings, Inc. (DOCN) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, DigitalOcean Holdings, Inc. (DOCN) closed at $39.30, marking a -1.33% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.14%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the company had gained 2.23% in the past month. In that same time, the Computer and Technology sector gained 6.81%, while the S&P 500 gained 5.34%.
Market participants will be closely following the financial results of DigitalOcean Holdings, Inc. in its upcoming release. The company is predicted to post an EPS of $0.38, indicating a 35.71% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $182.7 million, indicating a 10.64% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $765.9 million, indicating changes of +2.52% and +10.54%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for DigitalOcean Holdings, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an 85.54% increase. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
Digging into valuation, DigitalOcean Holdings, Inc. currently has a Forward P/E ratio of 24.37. This denotes a discount relative to the industry's average Forward P/E of 30.78.
One should further note that DOCN currently holds a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.83 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
