In the latest close session, DocuSign (DOCU) was up +2.62% at $57.50. The stock outpaced the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.91%.
Heading into today, shares of the provider of electronic signature technology had lost 19.54% over the past month, lagging the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. In that report, analysts expect DocuSign to post earnings of $0.95 per share. This would mark year-over-year growth of 10.47%. Our most recent consensus estimate is calling for quarterly revenue of $827.15 million, up 6.56% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.79 per share and revenue of $3.21 billion, indicating changes of +6.76% and +7.83%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.91% higher. DocuSign is currently a Zacks Rank #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 14.8. This valuation marks a discount compared to its industry average Forward P/E of 23.12.
Also, we should mention that DOCU has a PEG ratio of 1.04. 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. The average PEG ratio for the Internet - Software industry stood at 1.39 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 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
