DocuSign (DOCU) closed the most recent trading day at $79.37, moving +2.25% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 3.15% lagged the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.
Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 13.4% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $778.96 million, up 5.83% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.61% increase. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 21.96. This denotes a discount relative to the industry average Forward P/E of 28.43.
We can also see that DOCU currently has a PEG ratio of 9.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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