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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 $126.54, marking a -1.87% move from the previous day. This move lagged the S&P 500's daily gain of 1.48%. At the same time, the Dow added 2.21%, and the tech-heavy Nasdaq gained 0.77%.

Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. This is expected to be June 4, 2020. The company is expected to report EPS of $0.11, up 57.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $284 million, up 32.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $1.31 billion, which would represent changes of +70.97% and +34.43%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DOCU. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. DOCU is currently a Zacks Rank #3 (Hold).

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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