In the latest trading session, DocuSign (DOCU) closed at $58.57, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 1.1% loss on the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 11.46% over the past month. This has lagged the Business Services sector's loss of 5.33% and the S&P 500's loss of 2.28% in that time.
DocuSign will be looking to display strength as it nears its next earnings release, which is expected to be September 8, 2022. On that day, DocuSign is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 10.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $602.07 million, up 17.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.73 per share and revenue of $2.47 billion, which would represent changes of -12.63% and +17.4%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 7.44% lower. DocuSign is currently a Zacks Rank #4 (Sell).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 33.53. This represents a premium compared to its industry's average Forward P/E of 26.91.
It is also worth noting that DOCU currently has a PEG ratio of 2.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DOCU's industry had an average PEG ratio of 2.01 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 137, putting it in the bottom 46% 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.
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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