DocuSign (DOCU) closed the most recent trading day at $191.72, moving -0.58% from the previous trading session. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.
Heading into today, shares of the provider of electronic signature technology had gained 19.24% over the past month, outpacing the Business Services sector's gain of 4.38% and the S&P 500's gain of 5.71% in that time.
DOCU will be looking to display strength as it nears its next earnings release. On that day, DOCU is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 600%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $318.37 million, up 35.13% from the year-ago period.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $1.32 billion. These results would represent year-over-year changes of +48.39% and +35.04%, respectively.
Any recent changes to analyst estimates for DOCU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.27% higher. DOCU is currently a Zacks Rank #2 (Buy).
Investors should also note DOCU's current valuation metrics, including its Forward P/E ratio of 421.49. For comparison, its industry has an average Forward P/E of 31.94, which means DOCU is trading at a premium to the group.
It is also worth noting that DOCU currently has a PEG ratio of 13.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 4.31 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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