In the latest trading session, DocuSign (DOCU) closed at $72.77, marking a -1.9% move from the previous day. This move lagged the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.57%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Heading into today, shares of the provider of electronic signature technology had lost 0.35% over the past month, lagging the Business Services sector's gain of 3.5% and the S&P 500's gain of 2.35% in that time.
Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. In that report, analysts expect DOCU to post earnings of $0.05 per share. This would mark a year-over-year decline of 16.67%. Our most recent consensus estimate is calling for quarterly revenue of $267.44 million, up 33.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.24 per share and revenue of $966.26 million. These totals would mark changes of +166.67% and +37.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DOCU. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. DOCU is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note DOCU's current valuation metrics, including its Forward P/E ratio of 304.85. For comparison, its industry has an average Forward P/E of 22.94, which means DOCU is trading at a premium to the group.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 108, putting it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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