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DigitalOcean Holdings, Inc. (DOCN) Gains But Lags Market: What You Should Know

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DigitalOcean Holdings, Inc. (DOCN - Free Report) closed at $25.19 in the latest trading session, marking a +0.48% move from the prior day. The stock lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.

Heading into today, shares of the company had lost 25.12% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.

Wall Street will be looking for positivity from DigitalOcean Holdings, Inc. as it approaches its next earnings report date. On that day, DigitalOcean Holdings, Inc. is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 7.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $173.51 million, up 14.06% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.63 per share and revenue of $684.55 million, which would represent changes of +73.4% and +18.78%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DigitalOcean Holdings, Inc.These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate 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 15.4 right now. This represents a discount compared to its industry's average Forward P/E of 37.91.

It is also worth noting that DOCN currently has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.63 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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

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