DocuSign (DOCU) closed the most recent trading day at $70.56, moving -2.6% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.53%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.93%.
The stock of provider of electronic signature technology has fallen by 14.59% in the past month, lagging the Computer and Technology sector's gain of 1.25% and the S&P 500's gain of 1.13%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is expected to report EPS of $0.92, up 2.22% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $806.13 million, indicating a 6.8% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.69 per share and a revenue of $3.2 billion, indicating changes of +3.94% and +7.34%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.13% higher. DocuSign is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 19.63. This valuation marks a discount compared to its industry average Forward P/E of 29.31.
One should further note that DOCU currently holds a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.1.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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