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DocuSign (DOCU) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest trading session, DocuSign (DOCU - Free Report) closed at $54.78, marking a +0.16% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. Elsewhere, the Dow saw an upswing of 1.51%, while the tech-heavy Nasdaq depreciated by 0.01%.

The the stock of provider of electronic signature technology has fallen by 6.93% in the past month, lagging the Business Services sector's gain of 1.44% and the S&P 500's gain of 4.14%.

The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is scheduled to release its earnings on June 6, 2024. The company's earnings per share (EPS) are projected to be $0.79, reflecting a 9.72% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $706.07 million, up 6.76% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $2.92 billion. These totals would mark changes of +8.72% and +5.77%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).

Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 16.87. This denotes a discount relative to the industry's average Forward P/E of 22.92.

One should further note that DOCU currently holds a PEG ratio of 1.27. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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 has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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