DigitalOcean Holdings, Inc. (DOCN) Rises Higher Than Market: Key Facts
DigitalOcean Holdings, Inc. (DOCN) ended the recent trading session at $34.70, demonstrating a +0.96% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.23%. Elsewhere, the Dow saw an upswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.07%.
Shares of the company have depreciated by 6.6% over the course of the past month, underperforming the Computer and Technology sector's gain of 11.06% and the S&P 500's gain of 5.3%.
The investment community will be paying close attention to the earnings performance of DigitalOcean Holdings, Inc. in its upcoming release. The company is slated to reveal its earnings 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. Meanwhile, the latest consensus estimate predicts the revenue to be $178.25 million, indicating a 9.36% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for DigitalOcean Holdings, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.19% lower within the past month. As of now, DigitalOcean Holdings, Inc. holds a Zacks Rank of #4 (Sell).
From a valuation perspective, DigitalOcean Holdings, Inc. is currently exchanging hands at a Forward P/E ratio of 22.01. This indicates a discount in contrast to its industry's Forward P/E of 30.98.
Investors should also note that DOCN has a PEG ratio of 0.7 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
