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DocuSign (DOCU) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with DocuSign (DOCU - Free Report) standing at $68.89, reflecting a -0.48% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 0.33%.

The the stock of provider of electronic signature technology has risen by 22.53% in the past month, leading the Business Services sector's gain of 3.43% and the S&P 500's gain of 5.36%.

Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is expected to report EPS of $0.86, up 8.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $743.43 million, up 6.14% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.45 per share and a revenue of $2.94 billion, representing changes of +15.77% and +6.46%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. The Zacks Consensus EPS estimate has moved 2.31% higher within the past month. DocuSign is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, DocuSign is holding a Forward P/E ratio of 20.05. This expresses a discount compared to the average Forward P/E of 25.07 of its industry.

Also, we should mention that DOCU has a PEG ratio of 2.15. 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 of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.6.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.


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