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DigitalOcean Holdings, Inc. (DOCN) Advances But Underperforms Market: Key Facts
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DigitalOcean Holdings, Inc. (DOCN - Free Report) closed the latest trading day at $39.27, indicating a +0.03% change from the previous session's end. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Coming into today, shares of the company had gained 6.11% in the past month. In that same time, the Computer and Technology sector gained 3.77%, while the S&P 500 gained 3.56%.
Investors will be eagerly watching for the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.38, showcasing a 35.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $182.7 million, indicating a 10.64% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.63 per share and a revenue of $765.9 million, signifying shifts of +2.52% and +10.54%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DigitalOcean Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate has moved 85.54% higher within the past month. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, DigitalOcean Holdings, Inc. is currently trading at a Forward P/E ratio of 24.02. This signifies a discount in comparison to the average Forward P/E of 30.05 for its industry.
Investors should also note that DOCN has a PEG ratio of 1.59 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Advances But Underperforms Market: Key Facts
DigitalOcean Holdings, Inc. (DOCN - Free Report) closed the latest trading day at $39.27, indicating a +0.03% change from the previous session's end. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.
Coming into today, shares of the company had gained 6.11% in the past month. In that same time, the Computer and Technology sector gained 3.77%, while the S&P 500 gained 3.56%.
Investors will be eagerly watching for the performance of DigitalOcean Holdings, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.38, showcasing a 35.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $182.7 million, indicating a 10.64% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.63 per share and a revenue of $765.9 million, signifying shifts of +2.52% and +10.54%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DigitalOcean Holdings, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate has moved 85.54% higher within the past month. DigitalOcean Holdings, Inc. currently has a Zacks Rank of #2 (Buy).
In terms of valuation, DigitalOcean Holdings, Inc. is currently trading at a Forward P/E ratio of 24.02. This signifies a discount in comparison to the average Forward P/E of 30.05 for its industry.
Investors should also note that DOCN has a PEG ratio of 1.59 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.