Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, DocuSign (DOCU - Free Report) closed at $265.16, marking a +1.6% move from the previous day. This change outpaced the S&P 500's 0.19% loss on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.07%.

Investors will be hoping for strength from DOCU as it approaches its next earnings release. The company is expected to report EPS of $0.22, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $406.76 million, up 47.97% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DOCU. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.82% lower. DOCU currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 241.1 right now. This valuation marks a premium compared to its industry's average Forward P/E of 35.22.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


DocuSign (DOCU) - free report >>

Published in