In the latest close session, DocuSign (DOCU) was down 4.33% at $53.78. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
Shares of the provider of electronic signature technology witnessed a loss of 17.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.88%, and the S&P 500's gain of 0.78%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is predicted to post an EPS of $0.95, indicating a 10.47% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $828.2 million, up 6.69% 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 +7.86%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained unchanged. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 14.85. This denotes a discount relative to the industry average Forward P/E of 23.25.
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 1.38 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 33% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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