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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know

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DocuSign (DOCU - Free Report) closed at $208.13 in the latest trading session, marking a +1.18% move from the prior day. This move outpaced the S&P 500's daily gain of 1.17%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 0.8%.

Coming into today, shares of the provider of electronic signature technology had lost 14.45% in the past month. In that same time, the Business Services sector gained 2.1%, while the S&P 500 gained 2.26%.

Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. This is expected to be December 3, 2020. In that report, analysts expect DOCU to post earnings of $0.12 per share. This would mark year-over-year growth of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $360.38 million, up 44.44% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $1.39 billion, which would represent changes of +70.97% and +42.37%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DOCU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.71% higher within the past month. DOCU currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 385.69. This represents a premium compared to its industry's average Forward P/E of 34.46.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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