The most recent trading session ended with DocuSign (DOCU) standing at $90.27, reflecting a -0.08% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.1%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.72%.
Coming into today, shares of the provider of electronic signature technology had gained 16.58% in the past month. In that same time, the Computer and Technology sector gained 14.29%, while the S&P 500 gained 9.86%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company's upcoming EPS is projected at $0.81, signifying a 1.22% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $746.98 million, indicating a 5.26% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.46 per share and revenue of $3.13 billion, indicating changes of -2.54% and +5.2%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 0.39% lower. DocuSign is currently a Zacks Rank #3 (Hold).
With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 26.09. This indicates a discount in contrast to its industry's Forward P/E of 29.49.
It's also important to note that DOCU currently trades at a PEG ratio of 5.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
