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

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DocuSign (DOCU - Free Report) closed the most recent trading day at $288.02, moving -0.25% from the previous trading session. This move lagged the S&P 500's daily gain of 1.13%.

Coming into today, shares of the provider of electronic signature technology had gained 18.78% in the past month. In that same time, the Business Services sector lost 14.6%, while the S&P 500 gained 2.39%.

Investors will be hoping for strength from DOCU as it approaches its next earnings release. The company is expected to report EPS of $0.39, up 129.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $482.48 million, up 40.99% from the year-ago period.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $1.68 per share and revenue of $2.03 billion. These results would represent year-over-year changes of +86.67% and +39.39%, respectively.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 172.31 right now. For comparison, its industry has an average Forward P/E of 32.78, which means DOCU is trading at a premium to the group.

Investors should also note that DOCU has a PEG ratio of 3.08 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 2.72 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.

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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