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DocuSign (DOCU) Appreciates 8% in Six Months: Here's Why
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DocuSign, Inc. (DOCU - Free Report) shares have gained 8% in the past six months compared with the 5.9% rise of the industry it belongs to.
Reasons Behind the Rally
DocuSign registered growth in earnings and revenues in the fourth quarter of fiscal 2023. Non-GAAP earnings of 65 cents per share increased 35.4% year over year, whereas total revenues of $659.6 million were up 13.6%.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average earnings surprise of 12.3%.
Seven estimates for fiscal 2024 have moved north over the past 60 days versus one southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2024 earnings has climbed 8.8%.
DocuSign is benefiting from the continued demand for its main product, eSignatures. However, even with such soaring demand, the company is yet to explore many markets that provide it with ample growth opportunity, especially in the eSignature business.
The company has been formulating various growth strategies for acquiring customers, increasing eSignature use cases to existing customers, improving its offerings and popularizing other Agreement Cloud products to new and existing customers, and expanding internationally. Continued investments in sales, marketing and technical expertise give an idea of how the company is eager to grow.
For first-quarter 2023, ICF International’s earnings are expected to increase 7.6% year over year to $1.41 per share. In 2023, the company’s bottom line is expected to increase 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings has been revised 6% upward in the past 60 days. The consensus estimate for ICFI’s full-year earnings is pegged at $6.3 per share, which has been revised upward by 7.3% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Maximus’s first-quarter and 2023 earnings is pegged at 81 cents per share and $4.15, respectively. The first-quarter consensus mark has been revised 12% downward in the past 60 days. The consensus estimate for 2023 has been revised 7.2% upward in the past 60 days. The company currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Gartner’s first-quarter 2023 earnings is pegged at $2.04 per share. The bottom line has been revised 3% upward in the past 60 days. The consensus estimate for 2023 is pegged at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank of 2.
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DocuSign (DOCU) Appreciates 8% in Six Months: Here's Why
DocuSign, Inc. (DOCU - Free Report) shares have gained 8% in the past six months compared with the 5.9% rise of the industry it belongs to.
Reasons Behind the Rally
DocuSign registered growth in earnings and revenues in the fourth quarter of fiscal 2023. Non-GAAP earnings of 65 cents per share increased 35.4% year over year, whereas total revenues of $659.6 million were up 13.6%.
DocuSign Price
DocuSign price | DocuSign Quote
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average earnings surprise of 12.3%.
Seven estimates for fiscal 2024 have moved north over the past 60 days versus one southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2024 earnings has climbed 8.8%.
DocuSign is benefiting from the continued demand for its main product, eSignatures. However, even with such soaring demand, the company is yet to explore many markets that provide it with ample growth opportunity, especially in the eSignature business.
The company has been formulating various growth strategies for acquiring customers, increasing eSignature use cases to existing customers, improving its offerings and popularizing other Agreement Cloud products to new and existing customers, and expanding internationally. Continued investments in sales, marketing and technical expertise give an idea of how the company is eager to grow.
Zacks Rank and Other Stocks to Consider
DocuSign currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Zacks Business Services sector are ICF International (ICFI - Free Report) , Maximus (MMS - Free Report) and Gartner (IT - Free Report) .
For first-quarter 2023, ICF International’s earnings are expected to increase 7.6% year over year to $1.41 per share. In 2023, the company’s bottom line is expected to increase 9.2% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings has been revised 6% upward in the past 60 days. The consensus estimate for ICFI’s full-year earnings is pegged at $6.3 per share, which has been revised upward by 7.3% in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Maximus’s first-quarter and 2023 earnings is pegged at 81 cents per share and $4.15, respectively. The first-quarter consensus mark has been revised 12% downward in the past 60 days. The consensus estimate for 2023 has been revised 7.2% upward in the past 60 days. The company currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Gartner’s first-quarter 2023 earnings is pegged at $2.04 per share. The bottom line has been revised 3% upward in the past 60 days. The consensus estimate for 2023 is pegged at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank of 2.