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DocuSign (DOCU) Dips More Than Broader Markets: What You Should Know

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DocuSign (DOCU - Free Report) closed at $204.31 in the latest trading session, marking a -5.02% move from the prior day. This change lagged the S&P 500's daily loss of 0.67%.

Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. On that day, DOCU is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 125%. Our most recent consensus estimate is calling for quarterly revenue of $434.87 million, up 46.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.32 per share and revenue of $1.97 billion, which would represent changes of +46.67% and +35.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DOCU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 10.35% higher. DOCU is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, DOCU is holding a Forward P/E ratio of 162.8. This represents a premium compared to its industry's average Forward P/E of 30.6.

We can also see that DOCU currently has a PEG ratio of 4.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DOCU's industry had an average PEG ratio of 2.55 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% 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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