DocuSign (DOCU) closed at $237.10 in the latest trading session, marking a -0.47% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.
Heading into today, shares of the provider of electronic signature technology had gained 17.91% over the past month, outpacing the Business Services sector's loss of 6.34% and the S&P 500's gain of 5.22% 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 $0.11 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $360.50 million, up 44.49% from the year-ago period.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +70.97% and +42.38%, respectively.
Any recent changes to analyst estimates for DOCU should also be noted by investors. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.18% lower. DOCU is currently a Zacks Rank #4 (Sell).
Digging into valuation, DOCU currently has a Forward P/E ratio of 449.45. Its industry sports an average Forward P/E of 31.4, so we one might conclude that DOCU is trading at a premium comparatively.
We can also see that DOCU currently has a PEG ratio of 9.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DOCU's industry had an average PEG ratio of 3.24 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 124, which puts it in the top 50% 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.
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