Yahoo Finance DocuSign (DOCU) Gains As Market Dips: What You Should Know
In the latest trading session, DocuSign (DOCU) closed at $71.19, marking a +0.1% move from the previous day. This change outpaced the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the provider of electronic signature technology had gained 10.97% over the past month, lagging the Business Services sector's gain of 18.72% and outpacing the S&P 500's gain of 8.78% in that time.
Wall Street will be looking for positivity from DocuSign as it approaches its next earnings report date. In that report, analysts expect DocuSign to post earnings of $0.43 per share. This would mark a year-over-year decline of 8.51%. Meanwhile, our latest consensus estimate is calling for revenue of $602.06 million, up 17.63% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.75 per share and revenue of $2.47 billion, which would represent changes of -11.62% and +17.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DocuSign is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 40.6. This valuation marks a premium compared to its industry's average Forward P/E of 26.67.
Also, we should mention that DOCU has a PEG ratio of 2.46. 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. DOCU's industry had an average PEG ratio of 2.25 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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