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In the latest trading session, DocuSign (DOCU) closed at $249.28, marking a -0.39% move from the previous day. This change was narrower than the S&P 500's 0.72% loss on the day. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.87%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 1.32% over the past month. This has outpaced the Business Services sector's loss of 0.96% and lagged the S&P 500's gain of 4.69% in that time.
Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. On that day, DOCU is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $406.76 million, up 47.97% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.74 per share and revenue of $1.43 billion. These totals would mark changes of +138.71% and +46.71%, respectively, from last year.
It is also important to note the 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. Within the past 30 days, our consensus EPS projection has moved 2.46% higher. DOCU is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 339.32 right now. This represents a premium compared to its industry's average Forward P/E of 32.18.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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