DigitalOcean (DOCN) Surges 5.2%: Is This an Indication of Further Gains?

DigitalOcean Holdings, Inc. DOCN shares rallied 5.2% in the last trading session to close at $42.95. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% gain over the past four weeks.DigitalOcean is benefiting from its strong portfolio of innovative solutions and an expanding partner base, which have driven adoption across high-growth sectors like AI/ML, cybersecurity and data analytics.This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -20.5%. Revenues are expected to be $200.22 million, up 10.7% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For DigitalOcean, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DOCN going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>DigitalOcean is part of the Zacks Internet - Software industry. Synchronoss SNCR, another stock in the same industry, closed the last trading session 6.2% higher at $10.31. SNCR has returned 9.1% in the past month.Synchronoss' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. Compared to the company's year-ago EPS, this represents a change of +111.8%. Synchronoss currently boasts a Zacks Rank of #1 (Strong Buy).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DigitalOcean Holdings, Inc. (DOCN): Free Stock Analysis Report Synchronoss Technologies, Inc. (SNCR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks