In the latest trading session, DocuSign (DOCU) closed at $271.26, marking a -0.6% move from the previous day. This move lagged the S&P 500's daily gain of 0.37%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 0.64% over the past month. This has outpaced the Business Services sector's loss of 1.33% and lagged the S&P 500's gain of 2.13% 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 $0.46 per share. This would mark year-over-year growth of 109.09%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for DOCU should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 remained stagnant. DOCU is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, DOCU currently has a Forward P/E ratio of 158.66. This represents a premium compared to its industry's average Forward P/E of 28.16.
It is also worth noting that DOCU currently has a PEG ratio of 3.39. 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 1.82 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 153, which puts it in the bottom 40% 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.
To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.
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