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DocuSign (DOCU) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw DocuSign (DOCU - Free Report) ending at $62.01, denoting a -1.88% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.32%.

Shares of the provider of electronic signature technology witnessed a gain of 4.14% over the previous month, beating the performance of the Business Services sector with its gain of 0.42% and the S&P 500's gain of 1.61%.

Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. On that day, DocuSign is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Meanwhile, the latest consensus estimate predicts the revenue to be $698.05 million, indicating a 5.83% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.87 per share and a revenue of $2.75 billion, signifying shifts of +41.38% and +9.21%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, DocuSign possesses a Zacks Rank of #1 (Strong Buy).

Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 22.05. This indicates a discount in contrast to its industry's Forward P/E of 23.98.

One should further note that DOCU currently holds a PEG ratio of 1.45. 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. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.45.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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