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

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In the latest trading session, DocuSign (DOCU - Free Report) closed at $253.94, marking a -0.54% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.55%.

Coming into today, shares of the provider of electronic signature technology had gained 4.61% in the past month. In that same time, the Business Services sector lost 0.83%, while the S&P 500 gained 3.99%.

DOCU will be looking to display strength as it nears its next earnings release. On that day, DOCU is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 83.33%. Our most recent consensus estimate is calling for quarterly revenue of $406.76 million, up 47.97% from the year-ago period.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.74 per share and revenue of $1.43 billion. These results would represent year-over-year changes of +138.71% and +46.71%, respectively.

Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. DOCU is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 346.18 right now. This represents a premium compared to its industry's average Forward P/E of 34.51.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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