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DocuSign (DOCU) Gains But Lags Market: What You Should Know
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DocuSign (DOCU - Free Report) closed at $205.09 in the latest trading session, marking a +0.29% move from the prior day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.76%.
Coming into today, shares of the provider of electronic signature technology had gained 4.19% in the past month. In that same time, the Business Services sector gained 5.16%, while the S&P 500 gained 6.9%.
DOCU will be looking to display strength as it nears its next earnings release, which is expected to be September 3, 2020. The company is expected to report EPS of $0.07, up 600% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $318.37 million, up 35.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $1.32 billion, which would represent changes of +48.39% and +35.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DOCU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 446.97. For comparison, its industry has an average Forward P/E of 33.99, which means DOCU is trading at a premium to the group.
Also, we should mention that DOCU has a PEG ratio of 14.33. 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. The Technology Services industry currently had an average PEG ratio of 3.95 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DocuSign (DOCU) Gains But Lags Market: What You Should Know
DocuSign (DOCU - Free Report) closed at $205.09 in the latest trading session, marking a +0.29% move from the prior day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.76%.
Coming into today, shares of the provider of electronic signature technology had gained 4.19% in the past month. In that same time, the Business Services sector gained 5.16%, while the S&P 500 gained 6.9%.
DOCU will be looking to display strength as it nears its next earnings release, which is expected to be September 3, 2020. The company is expected to report EPS of $0.07, up 600% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $318.37 million, up 35.13% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.46 per share and revenue of $1.32 billion, which would represent changes of +48.39% and +35.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DOCU. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 446.97. For comparison, its industry has an average Forward P/E of 33.99, which means DOCU is trading at a premium to the group.
Also, we should mention that DOCU has a PEG ratio of 14.33. 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. The Technology Services industry currently had an average PEG ratio of 3.95 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.