Why DigitalOcean Holdings, Inc. (DOCN) Dipped More Than Broader Market Today
In the latest market close, DigitalOcean Holdings, Inc. (DOCN) reached $33, with a -0.42% movement compared to the previous day. This change lagged the S&P 500's 0.07% loss on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the company had lost 12.88% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% 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 February 21, 2024. In that report, analysts expect DigitalOcean Holdings, Inc. to post earnings of $0.37 per share. This would mark year-over-year growth of 32.14%. 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. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.48% decrease. At present, DigitalOcean Holdings, Inc. boasts a Zacks Rank of #4 (Sell).
Digging into valuation, DigitalOcean Holdings, Inc. currently has a Forward P/E ratio of 21.22. This valuation marks a discount compared to its industry's average Forward P/E of 34.06.
We can additionally observe that DOCN currently boasts a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.76 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) : Free Stock Analysis Report
