DigitalOcean (DOCN) upgraded to Zacks Rank #2 (Buy) due to positive earnings estimates trend.

From Nasdaq: 2024-12-25 12:00:10

DigitalOcean Holdings, Inc. (DOCN) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates. This upgrade reflects a positive outlook on the company’s earnings potential, which could impact its stock price. Institutional investors use earnings estimates to determine fair value and drive stock movements.

Investors can benefit from tracking earnings estimate revisions, as they are strongly correlated with stock price movements. The Zacks Rank system classifies stocks based on earnings estimates, with Zacks Rank #1 stocks historically generating an average annual return of +25%. DigitalOcean is expected to earn $1.76 per share for the fiscal year ending December 2024.

DigitalOcean’s rating upgrade positions it in the top 20% of Zacks-covered stocks, indicating potential for upward movement. The Zacks Top 10 Stocks for 2025, to be released on January 2, have historically outperformed the market. Zacks Investment Research offers insights on stock recommendations and market trends for investors to consider.



Read more at Nasdaq: DigitalOcean (DOCN) Upgraded to Buy: Here’s What You Should Know