DocuSign (DOCU) closed the most recent trading day at $77.96, moving -2.4% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq appreciated by 0.15%.
The provider of electronic signature technology's stock has climbed by 3.26% in the past month, falling short of the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 3.39%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. In that report, analysts expect DocuSign to post earnings of $0.84 per share. This would mark a year-over-year decline of 13.4%. In the meantime, our current consensus estimate forecasts the revenue to be $778.96 million, indicating a 5.83% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.54 per share and a revenue of $3.16 billion, demonstrating changes of -0.28% and +6.05%, respectively, from the preceding year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 22.6. This expresses a discount compared to the average Forward P/E of 28.27 of its industry.
Meanwhile, DOCU's PEG ratio is currently 9.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.15 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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