DocuSign (DOCU) closed the most recent trading day at $70.81, moving -3.05% from the previous trading session. This change lagged the S&P 500's 1.17% loss on the day. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 2.04%.
Shares of the provider of electronic signature technology have appreciated by 1.21% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.49%, and the S&P 500's gain of 2.12%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company's upcoming EPS is projected at $0.92, signifying a 2.22% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $806.13 million, up 6.8% from the year-ago period.
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 +9.69%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DocuSign is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 19.79 right now. This indicates a discount in contrast to its industry's Forward P/E of 29.38.
We can also see that DOCU currently has a PEG ratio of 1.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.04.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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