DocuSign (DOCU) closed the most recent trading day at $44.34, moving -6.89% from the previous trading session. This change lagged the S&P 500's 0.01% loss on the day. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.16%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 26.18% lagged the Computer and Technology sector's loss of 1.54% and the S&P 500's loss of 0.28%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.95, signifying a 10.47% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $828.2 million, indicating a 6.69% increase compared to the same quarter of the previous year.
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 take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, DocuSign holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 11.45 right now. For comparison, its industry has an average Forward P/E of 20.43, which means DocuSign is trading at a discount to the group.
Also, we should mention that DOCU has a PEG ratio of 0.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 139, finds itself in the bottom 44% echelons 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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