In the latest close session, DocuSign (DOCU) was down 1.42% at $45.07. The stock's change was less than the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 1.05%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
The provider of electronic signature technology's stock has dropped by 14.99% in the past month, falling short of the Computer and Technology sector's loss of 3.21% and the S&P 500's loss of 0.5%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 17, 2026. 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 $828.2 million, up 6.69% from the year-ago period.
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 +7.86%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These revisions help to show the ever-changing nature 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 demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.63% upward. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 10.99. This expresses a discount compared to the average Forward P/E of 19.36 of its industry.
Also, we should mention that DOCU has a PEG ratio of 0.77. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.12.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 135, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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