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Why DocuSign (DOCU) Outpaced the Stock Market Today
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DocuSign (DOCU - Free Report) closed the most recent trading day at $50.58, moving +1.71% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.04%. Elsewhere, the Dow saw an upswing of 0.76%, while the tech-heavy Nasdaq appreciated by 1.03%.
The provider of electronic signature technology's shares have seen a decrease of 7.62% over the last month, not keeping up with the Business Services sector's loss of 5.54% and the S&P 500's loss of 6.74%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. It is anticipated that the company will report an EPS of $0.80, marking a 11.11% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $726.15 million, showing a 5.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.26 per share and a revenue of $2.93 billion, demonstrating changes of +9.4% and +5.95%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 15.24. This valuation marks a discount compared to its industry's average Forward P/E of 21.
Investors should also note that DOCU has a PEG ratio of 2.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.42.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why DocuSign (DOCU) Outpaced the Stock Market Today
DocuSign (DOCU - Free Report) closed the most recent trading day at $50.58, moving +1.71% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.04%. Elsewhere, the Dow saw an upswing of 0.76%, while the tech-heavy Nasdaq appreciated by 1.03%.
The provider of electronic signature technology's shares have seen a decrease of 7.62% over the last month, not keeping up with the Business Services sector's loss of 5.54% and the S&P 500's loss of 6.74%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. It is anticipated that the company will report an EPS of $0.80, marking a 11.11% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $726.15 million, showing a 5.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.26 per share and a revenue of $2.93 billion, demonstrating changes of +9.4% and +5.95%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.49% downward. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 15.24. This valuation marks a discount compared to its industry's average Forward P/E of 21.
Investors should also note that DOCU has a PEG ratio of 2.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.42.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.