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Is DocuSign (DOCU) Stock Outpacing Its Business Services Peers This Year?

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Investors focused on the Business Services space have likely heard of DocuSign (DOCU - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? One simple way to answer this question is to take a look at the year-to-date performance of DOCU and the rest of the Business Services group's stocks.

DocuSign is one of 194 individual stocks in the Business Services sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DOCU is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for DOCU's full-year earnings has moved 1.63% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DOCU has returned about 72.45% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -4.52% on a year-to-date basis. As we can see, DocuSign is performing better than its sector in the calendar year.

Looking more specifically, DOCU belongs to the Technology Services industry, a group that includes 61 individual stocks and currently sits at #65 in the Zacks Industry Rank. On average, this group has gained an average of 3.68% so far this year, meaning that DOCU is performing better in terms of year-to-date returns.

Going forward, investors interested in Business Services stocks should continue to pay close attention to DOCU as it looks to continue its solid performance.


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