The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is DigitalOcean Holdings, Inc. (DOCN) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
DigitalOcean Holdings, Inc. is a member of our Computer and Technology group, which includes 613 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DigitalOcean Holdings, Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DOCN's full-year earnings has moved 38% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DOCN has gained about 191.9% so far this year. In comparison, Computer and Technology companies have returned an average of 15.3%. This means that DigitalOcean Holdings, Inc. is performing better than its sector in terms of year-to-date returns.
One other Computer and Technology stock that has outperformed the sector so far this year is ASE Technology Hldg (ASX). The stock is up 148% year-to-date.
The consensus estimate for ASE Technology Hldg's current year EPS has increased 8.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, DigitalOcean Holdings, Inc. belongs to the Internet - Software industry, a group that includes 175 individual stocks and currently sits at #90 in the Zacks Industry Rank. This group has lost an average of 8.7% so far this year, so DOCN is performing better in this area.
In contrast, ASE Technology Hldg falls under the Electronics - Semiconductors industry. Currently, this industry has 50 stocks and is ranked #43. Since the beginning of the year, the industry has moved +45%.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to DigitalOcean Holdings, Inc. and ASE Technology Hldg as they could maintain their solid performance.
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DigitalOcean Holdings, Inc. (DOCN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).