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DocuSign (DOCU) closed the most recent trading day at $232.30, moving +0.99% from the previous trading session. This change outpaced the S&P 500's 0.09% loss on the day.
Prior to today's trading, shares of the provider of electronic signature technology had gained 16.8% over the past month. This has outpaced the Business Services sector's gain of 1.15% and the S&P 500's gain of 5.45% in that time.
DOCU will be looking to display strength as it nears its next earnings release. In that report, analysts expect DOCU to post earnings of $0.27 per share. This would mark year-over-year growth of 125%. Our most recent consensus estimate is calling for quarterly revenue of $434.87 million, up 46.41% from the year-ago period.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $1.32 per share and revenue of $1.97 billion. These results would represent year-over-year changes of +46.67% and +35.62%, respectively.
Investors might also notice recent changes to analyst estimates for DOCU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 10.35% higher within the past month. DOCU is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 174.09 right now. Its industry sports an average Forward P/E of 32.5, so we one might conclude that DOCU is trading at a premium comparatively.
Also, we should mention that DOCU has a PEG ratio of 4.51. 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. DOCU's industry had an average PEG ratio of 2.92 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% 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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