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Why DocuSign (DOCU) Might be Well Poised for a Surge
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Investors might want to bet on DocuSign (DOCU - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this provider of electronic signature technology, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $0.77 per share for the current quarter represents a change of +6.94% from the number reported a year ago.
Over the last 30 days, six estimates have moved higher for DocuSign while one has gone lower. As a result, the Zacks Consensus Estimate has increased 73.81%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $3.18 per share, representing a year-over-year change of +6.71%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for DocuSign. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 61.29%.
Favorable Zacks Rank
Thanks to promising estimate revisions, DocuSign currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for DocuSign have attracted decent investments and pushed the stock 15.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Why DocuSign (DOCU) Might be Well Poised for a Surge
Investors might want to bet on DocuSign (DOCU - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this provider of electronic signature technology, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For DocuSign, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
The earnings estimate of $0.77 per share for the current quarter represents a change of +6.94% from the number reported a year ago.
Over the last 30 days, six estimates have moved higher for DocuSign while one has gone lower. As a result, the Zacks Consensus Estimate has increased 73.81%.
Current-Year Estimate Revisions
For the full year, the company is expected to earn $3.18 per share, representing a year-over-year change of +6.71%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for DocuSign. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 61.29%.
Favorable Zacks Rank
Thanks to promising estimate revisions, DocuSign currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for DocuSign have attracted decent investments and pushed the stock 15.8% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.