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DigitalOcean Holdings, Inc. (DOCN) Stock Moves -0.27%: What You Should Know

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DigitalOcean Holdings, Inc. (DOCN - Free Report) closed the most recent trading day at $59.02, moving -0.27% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the company had lost 0.52% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.71% and the S&P 500's loss of 6.25% in that time.

Investors will be hoping for strength from DigitalOcean Holdings, Inc. as it approaches its next earnings release, which is expected to be February 24, 2022.

Investors might also notice recent changes to analyst estimates for DigitalOcean Holdings, Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DigitalOcean Holdings, Inc. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DigitalOcean Holdings, Inc. has a Forward P/E ratio of 105.36 right now. For comparison, its industry has an average Forward P/E of 52.41, which means DigitalOcean Holdings, Inc. is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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