DocuSign (DOCU) Exceeds Market Returns: Some Facts to Consider
DocuSign (DOCU) ended the recent trading session at $50.08, demonstrating a +0.2% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 19.81% over the past month. This has lagged the Business Services sector's gain of 5.03% and the S&P 500's gain of 2.99% in that time.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is scheduled to release its earnings 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. Meanwhile, our latest consensus estimate is calling for revenue of $698.05 million, up 5.83% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DocuSign currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is presently being traded at a Forward P/E ratio of 17.54. This denotes a discount relative to the industry's average Forward P/E of 25.33.
Meanwhile, DOCU's PEG ratio is currently 1.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry had an average PEG ratio of 1.6 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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
