DigitalOcean Holdings, Inc. (DOCN) Rises As Market Takes a Dip: Key Facts
DigitalOcean Holdings, Inc. (DOCN) ended the recent trading session at $39.43, demonstrating a +0.03% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.1%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Prior to today's trading, shares of the company had gained 10.51% over the past month. This has lagged the Computer and Technology sector's gain of 11.35% and outpaced the S&P 500's gain of 5.78% in that time.
Market participants will be closely following the financial results of DigitalOcean Holdings, Inc. in its upcoming release. The company plans to announce its earnings on February 21, 2024. The company is expected to report EPS of $0.37, up 32.14% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $178.25 million, reflecting a 9.36% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for DigitalOcean Holdings, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.19% decrease. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #4 (Sell).
In terms of valuation, DigitalOcean Holdings, Inc. is presently being traded at a Forward P/E ratio of 25.25. This expresses a discount compared to the average Forward P/E of 32.97 of its industry.
We can also see that DOCN currently has a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DOCN's industry had an average PEG ratio of 1.67 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
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
