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

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DocuSign (DOCU - Free Report) closed the most recent trading day at $226.66, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 1.5%, and the Nasdaq, a tech-heavy index, added 0.56%.

Heading into today, shares of the provider of electronic signature technology had lost 3.59% over the past month, lagging the Business Services sector's gain of 1.8% and the S&P 500's loss of 0.53% in that time.

Investors will be hoping for strength from DOCU as it approaches its next earnings release, which is expected to be March 11, 2021. On that day, DOCU is projected to report earnings of $0.22 per share, which would represent year-over-year growth of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $406.76 million, up 47.97% from the year-ago period.

Investors might also notice recent changes to analyst estimates for DOCU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 has moved 0.82% lower. DOCU is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note DOCU's current valuation metrics, including its Forward P/E ratio of 208.53. Its industry sports an average Forward P/E of 35.04, so we one might conclude that DOCU is trading at a premium comparatively.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.

To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.


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