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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $250.37, moving +1.77% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.57%.

Coming into today, shares of the provider of electronic signature technology had gained 2.92% in the past month. In that same time, the Business Services sector gained 2.13%, while the S&P 500 gained 4.69%.

DOCU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.22, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $406.76 million, up 47.97% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. DOCU is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DOCU's current valuation metrics, including its Forward P/E ratio of 226.48. This represents a premium compared to its industry's average Forward P/E of 34.12.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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