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DigitalOcean Holdings, Inc. (DOCN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, DigitalOcean Holdings, Inc. (DOCN - Free Report) closed at $60.40, marking a +1.39% move from the previous day. This move outpaced the S&P 500's daily gain of 0.81%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 0.61%.

Coming into today, shares of the company had gained 15.96% in the past month. In that same time, the Computer and Technology sector gained 4.13%, while the S&P 500 gained 5.64%.

Investors will be hoping for strength from DigitalOcean Holdings, Inc. as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $126.27 million, up 34.82% from the prior-year quarter.

DOCN's full-year Zacks Consensus Estimates are calling for earnings of $0.69 per share and revenue of $564.91 million. These results would represent year-over-year changes of +102.94% and +31.82%, respectively.

Investors might also notice recent changes to analyst estimates for DigitalOcean Holdings, Inc.Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DigitalOcean Holdings, Inc. has a Forward P/E ratio of 86.13 right now. Its industry sports an average Forward P/E of 49.35, so we one might conclude that DigitalOcean Holdings, Inc. is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow DOCN in the coming trading sessions, be sure to utilize Zacks.com.


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