DocuSign (DOCU) Advances While Market Declines: Some Information for Investors
DocuSign (DOCU) closed the most recent trading day at $51.57, moving +0.76% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.3%.
The provider of electronic signature technology's shares have seen a decrease of 19.47% over the last month, not keeping up with the Business Services sector's gain of 7.93% and the S&P 500's gain of 5.78%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. In that report, analysts expect DocuSign to post earnings of $0.64 per share. This would mark a year-over-year decline of 1.54%. Simultaneously, our latest consensus estimate expects the revenue to be $698.05 million, showing a 5.83% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, DocuSign holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 17.97 right now. This valuation marks a discount compared to its industry's average Forward P/E of 24.47.
Also, we should mention that DOCU has a PEG ratio of 1.18. 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. The average PEG ratio for the Technology Services industry stood at 1.55 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DocuSign (DOCU) : Free Stock Analysis Report
