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DocuSign (DOCU) closed at $275.17 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.35%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 4.75% over the past month. This has outpaced the Business Services sector's gain of 3.75% and lagged the S&P 500's gain of 7.11% in that time.
DOCU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, up 109.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $529.33 million, up 38.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $2.08 billion. These totals would mark changes of +91.11% and +43.37%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DOCU. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DOCU is currently a Zacks Rank #3 (Hold).
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 159.25. Its industry sports an average Forward P/E of 31.24, so we one might conclude that DOCU is trading at a premium comparatively.
It is also worth noting that DOCU currently has a PEG ratio of 3.4. 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 Technology Services industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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