DigitalOcean Holdings, Inc. (DOCN) Stock Dips While Market Gains: Key Facts
DigitalOcean Holdings, Inc. (DOCN) closed the most recent trading day at $36.91, moving -1.47% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.05%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Prior to today's trading, shares of the company had gained 29.66% over the past month. This has outpaced the Computer and Technology sector's gain of 4.37% and the S&P 500's gain of 4.71% in that time.
The upcoming earnings release of DigitalOcean Holdings, Inc. will be of great interest to investors. The company's upcoming EPS is projected at $0.36, signifying a 28.57% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $178.22 million, reflecting a 9.34% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.50 per share and revenue of $689.94 million. These totals would mark changes of +59.57% and +19.71%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for DigitalOcean Holdings, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
In the context of valuation, DigitalOcean Holdings, Inc. is at present trading with a Forward P/E ratio of 24.93. This represents a discount compared to its industry's average Forward P/E of 39.53.
We can additionally observe that DOCN currently boasts a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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
