DocuSign (DOCU) Gains But Lags Market: What You Should Know
DocuSign (DOCU) closed the most recent trading day at $212.97, moving +0.33% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day.
Heading into today, shares of the provider of electronic signature technology had lost 3.27% over the past month, lagging the Business Services sector's gain of 0.5% and the S&P 500's gain of 7.34% in that time.
Investors will be hoping for strength from DOCU as it approaches its next earnings release. On that day, DOCU is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 125%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $434.87 million, up 46.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $1.97 billion, which would represent changes of +47.78% and +35.62%, respectively, from the prior year.
Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.74% higher. DOCU currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 154.84 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.71.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
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.
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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