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DigitalOcean Holdings, Inc. (DOCN) Outpaces Stock Market Gains: What You Should Know
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DigitalOcean Holdings, Inc. (DOCN - Free Report) closed the most recent trading day at $48.76, moving +0.45% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the company had gained 24.33% over the past month, outpacing the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 3.43% 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 August 3, 2023. The company is expected to report EPS of $0.40, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $169.82 million, up 26.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $701.95 million, which would represent changes of +78.72% and +21.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DigitalOcean Holdings, Inc.These revisions help to show the ever-changing nature 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, DigitalOcean Holdings, Inc. is currently trading at a Forward P/E ratio of 28.91. For comparison, its industry has an average Forward P/E of 43.5, which means DigitalOcean Holdings, Inc. is trading at a discount to the group.
Investors should also note that DOCN has a PEG ratio of 0.65 right now. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DigitalOcean Holdings, Inc. (DOCN) Outpaces Stock Market Gains: What You Should Know
DigitalOcean Holdings, Inc. (DOCN - Free Report) closed the most recent trading day at $48.76, moving +0.45% from the previous trading session. This change outpaced the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 1.37%.
Heading into today, shares of the company had gained 24.33% over the past month, outpacing the Computer and Technology sector's gain of 1.16% and the S&P 500's gain of 3.43% 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 August 3, 2023. The company is expected to report EPS of $0.40, up 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $169.82 million, up 26.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $701.95 million, which would represent changes of +78.72% and +21.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DigitalOcean Holdings, Inc.These revisions help to show the ever-changing nature 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, DigitalOcean Holdings, Inc. is currently trading at a Forward P/E ratio of 28.91. For comparison, its industry has an average Forward P/E of 43.5, which means DigitalOcean Holdings, Inc. is trading at a discount to the group.
Investors should also note that DOCN has a PEG ratio of 0.65 right now. 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 was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.