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DocuSign (DOCU) Stock Moves -1.06%: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $88.60, moving -1.06% from the previous trading session. This change was narrower than the S&P 500's 3.39% loss on the day. Meanwhile, the Dow lost 3.58%, and the Nasdaq, a tech-heavy index, lost 3.1%.

Coming into today, shares of the provider of electronic signature technology had gained 10.91% in the past month. In that same time, the Business Services sector lost 5.8%, while the S&P 500 lost 4.8%.

DOCU will be looking to display strength as it nears its next earnings release, which is expected to be March 12, 2020. The company is expected to report EPS of $0.05, down 16.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $267.44 million, up 33.9% from the year-ago period.

Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU is currently a Zacks Rank #3 (Hold).

In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 223.88. For comparison, its industry has an average Forward P/E of 22.55, which means DOCU is trading at a premium to the group.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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