DigitalOcean Holdings, Inc. (DOCN) Surpasses Market Returns: Some Facts Worth Knowing
DigitalOcean Holdings, Inc. (DOCN) closed the latest trading day at $24.70, indicating a +1.44% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.43% for the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.71%.
The company's stock has dropped by 2.01% in the past month, falling short of the Computer and Technology sector's loss of 1.56% and outpacing the S&P 500's loss of 2.1%.
Analysts and investors alike will be keeping a close eye on the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. The company's earnings per share (EPS) are projected to be $0.39, reflecting a 2.63% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $173.51 million, indicating a 14.06% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.57 per share and a revenue of $684.25 million, signifying shifts of +67.02% and +18.73%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 16.67% decrease. 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 15.56. This expresses a discount compared to the average Forward P/E of 38 of its industry.
Investors should also note that DOCN has a PEG ratio of 0.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry had an average PEG ratio of 1.5 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
