DocuSign (DOCU) Exceeds Market Returns: Some Facts to Consider
DocuSign (DOCU) closed the latest trading day at $52.13, indicating a +0.64% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.17% for the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.37%.
The provider of electronic signature technology's shares have seen a decrease of 18.23% over the last month, not keeping up with the Business Services sector's gain of 8.35% and the S&P 500's gain of 3.8%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 7, 2024. The company is predicted to post an EPS of $0.64, indicating a 1.54% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $698.05 million, showing a 5.83% escalation compared to the year-ago quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. These revisions help to show the ever-changing nature 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, DocuSign holds a Zacks Rank of #3 (Hold).
Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 18.18. This expresses a discount compared to the average Forward P/E of 26.15 of its industry.
It is also worth noting that DOCU currently has a PEG ratio of 1.2. 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 average PEG ratio for the Technology Services industry stood at 1.54 at the close of the market yesterday.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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DocuSign (DOCU) : Free Stock Analysis Report
