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DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, DocuSign (DOCU - Free Report) closed at $72.53, marking a -0.75% move from the previous day. This move lagged the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.34%.

Coming into today, shares of the provider of electronic signature technology had lost 0.41% in the past month. In that same time, the Business Services sector gained 3.62%, while the S&P 500 gained 4.73%.

DOCU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.05, down 16.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $267.44 million, up 33.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.24 per share and revenue of $966.26 million, which would represent changes of +166.67% and +37.85%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DOCU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU is currently a Zacks Rank #3 (Hold).

Looking at its valuation, DOCU is holding a Forward P/E ratio of 300.33. Its industry sports an average Forward P/E of 23.25, so we one might conclude that DOCU is trading at a premium comparatively.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 36% of all 250+ industries.

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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