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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
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DocuSign (DOCU - Free Report) closed at $78.27 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 1.86%. Meanwhile, the Dow gained 1.98%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the provider of electronic signature technology had lost 11.1% over the past month, outpacing the Business Services sector's loss of 12.48% and the S&P 500's loss of 12.37% in that time.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release, which is expected to be June 9, 2022. The company is expected to report EPS of $0.46, up 4.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $581.05 million, up 23.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $2.48 billion. These totals would mark changes of +0.51% and +17.52%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. DocuSign is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 38.57 right now. This represents a premium compared to its industry's average Forward P/E of 20.04.
It is also worth noting that DOCU currently has a PEG ratio of 2.34. 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. Technology Services stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
DocuSign (DOCU - Free Report) closed at $78.27 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 1.86%. Meanwhile, the Dow gained 1.98%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the provider of electronic signature technology had lost 11.1% over the past month, outpacing the Business Services sector's loss of 12.48% and the S&P 500's loss of 12.37% in that time.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release, which is expected to be June 9, 2022. The company is expected to report EPS of $0.46, up 4.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $581.05 million, up 23.87% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.99 per share and revenue of $2.48 billion. These totals would mark changes of +0.51% and +17.52%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. DocuSign is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 38.57 right now. This represents a premium compared to its industry's average Forward P/E of 20.04.
It is also worth noting that DOCU currently has a PEG ratio of 2.34. 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. Technology Services stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.