Why the Market Dipped But DigitalOcean Holdings, Inc. (DOCN) Gained Today
DigitalOcean Holdings, Inc. (DOCN) closed the most recent trading day at $22.99, moving +0.17% from the previous trading session. This change outpaced the S&P 500's 0.85% loss on the day. At the same time, the Dow lost 0.75%, and the tech-heavy Nasdaq lost 0.96%.
Shares of the company witnessed a loss of 4.73% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.07% and the S&P 500's loss of 3.02%.
Market participants will be closely following the financial results of DigitalOcean Holdings, Inc. in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is predicted to post an EPS of $0.38, indicating constancy compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $173.51 million, showing a 14.06% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.41 per share and revenue of $684.25 million, indicating changes of +50% and +18.73%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for DigitalOcean Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 28.08% decrease. DigitalOcean Holdings, Inc. is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, DigitalOcean Holdings, Inc. is currently being traded at a Forward P/E ratio of 16.23. This denotes a discount relative to the industry's average Forward P/E of 37.04.
We can also see that DOCN currently has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.47 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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.
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
