Yahoo Finance DocuSign (DOCU) Stock Declines While Market Improves: Some Information for Investors
DocuSign (DOCU) closed the most recent trading day at $55.36, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily gain of 0.87%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 1.11%.
The provider of electronic signature technology's shares have seen a decrease of 4.41% over the last month, surpassing the Business Services sector's loss of 7.27% and falling behind the S&P 500's loss of 3.97%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. On that day, DocuSign is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 8.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $705.99 million, indicating a 6.74% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.23 per share and revenue of $2.92 billion, indicating changes of +8.39% and +5.76%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 6.49% higher within the past month. DocuSign is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 17.27. This denotes a discount relative to the industry's average Forward P/E of 22.36.
One should further note that DOCU currently holds a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.
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DocuSign (DOCU) : Free Stock Analysis Report
