In the latest close session, DocuSign (DOCU) was up +1.48% at $46.75. This change outpaced the S&P 500's 0.51% loss on the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
The provider of electronic signature technology's shares have seen a decrease of 29.33% over the last month, not keeping up with the Computer and Technology sector's loss of 0.27% and the S&P 500's gain of 0.93%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is expected to report EPS of $0.95, up 10.47% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $828.2 million, indicating a 6.69% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $3.21 billion, indicating changes of +6.76% and 0%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. DocuSign is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 11.07. This valuation marks a discount compared to its industry average Forward P/E of 20.67.
We can additionally observe that DOCU currently boasts a PEG ratio of 0.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.17.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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