DigitalOcean Holdings, Inc. (DOCN) Suffers a Larger Drop Than the General Market: Key Insights
DigitalOcean Holdings, Inc. (DOCN) closed the most recent trading day at $22.31, moving -0.36% from the previous trading session. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.12%.
Heading into today, shares of the company had lost 13.35% over the past month, lagging the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53% in that time.
Investors will be eagerly watching for the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 2, 2023. The company is expected to report EPS of $0.41, up 7.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $173.51 million, up 14.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.63 per share and revenue of $684.25 million, indicating changes of +73.4% and +18.73%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. DigitalOcean Holdings, Inc. presently features a Zacks Rank of #4 (Sell).
Looking at valuation, DigitalOcean Holdings, Inc. is presently trading at a Forward P/E ratio of 13.76. This represents a discount compared to its industry's average Forward P/E of 36.54.
We can additionally observe that DOCN currently boasts a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 1.47 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
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.
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
