DocuSign (DOCU) closed at $203.98 in the latest trading session, marking a +1.47% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 20.52% over the past month. This has outpaced the Business Services sector's gain of 4.59% and the S&P 500's gain of 5.34% in that time.
Investors will be hoping for strength from DOCU as it approaches its next earnings release. In that report, analysts expect DOCU to post earnings of $0.07 per share. This would mark year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $318.37 million, up 35.13% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $1.32 billion, which would represent changes of +48.39% and +35.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DOCU. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. DOCU is currently a Zacks Rank #2 (Buy).
Digging into valuation, DOCU currently has a Forward P/E ratio of 439.41. This valuation marks a premium compared to its industry's average Forward P/E of 33.46.
We can also see that DOCU currently has a PEG ratio of 14.09. 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 4.22 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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