DigitalOcean Holdings, Inc. (DOCN) Rises Yet Lags Behind Market: Some Facts Worth Knowing
DigitalOcean Holdings, Inc. (DOCN) closed the latest trading day at $34.66, indicating a +0.49% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 1.06%, while the tech-heavy Nasdaq appreciated by 1.7%.
The the stock of company has fallen by 7.93% in the past month, lagging the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94%.
Investors will be eagerly watching for the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.37, marking a 32.14% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $178.25 million, up 9.36% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for DigitalOcean Holdings, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.48% lower. As of now, DigitalOcean Holdings, Inc. holds a Zacks Rank of #3 (Hold).
Investors should also note DigitalOcean Holdings, Inc.'s current valuation metrics, including its Forward P/E ratio of 22.09. This signifies a discount in comparison to the average Forward P/E of 33.82 for its industry.
Meanwhile, DOCN's PEG ratio is currently 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.73 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
