DocuSign (DOCU) closed at $68.87 in the latest trading session, marking a +1.34% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.69%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 0.82%.
The provider of electronic signature technology's stock has dropped by 3.88% in the past month, falling short of the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 0.31%.
Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to go public on December 4, 2025. The company is predicted to post an EPS of $0.92, indicating a 2.22% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $806.13 million, indicating a 6.8% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $3.2 billion. These totals would mark changes of +3.94% and +7.34%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DocuSign is currently a Zacks Rank #3 (Hold).
From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 18.42. This denotes a discount relative to the industry average Forward P/E of 28.61.
Investors should also note that DOCU has a PEG ratio of 1.25 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.86.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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