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DocuSign (DOCU) Gains But Lags Market: What You Should Know
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DocuSign (DOCU - Free Report) closed the most recent trading day at $75.25, moving +1.02% from the previous trading session. This move lagged the S&P 500's daily gain of 2.02%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 0.28%.
Coming into today, shares of the provider of electronic signature technology had lost 22.66% in the past month. In that same time, the Business Services sector lost 11.76%, while the S&P 500 lost 8.64%.
Wall Street will be looking for positivity from DocuSign as it approaches its next earnings report date. On that day, DocuSign is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 4.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $581.05 million, up 23.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.99 per share and revenue of $2.48 billion, which would represent changes of +0.51% and +17.52%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DocuSign is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 37.43 right now. This represents a premium compared to its industry's average Forward P/E of 20.32.
Also, we should mention that DOCU has a PEG ratio of 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% 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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DocuSign (DOCU) Gains But Lags Market: What You Should Know
DocuSign (DOCU - Free Report) closed the most recent trading day at $75.25, moving +1.02% from the previous trading session. This move lagged the S&P 500's daily gain of 2.02%. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 0.28%.
Coming into today, shares of the provider of electronic signature technology had lost 22.66% in the past month. In that same time, the Business Services sector lost 11.76%, while the S&P 500 lost 8.64%.
Wall Street will be looking for positivity from DocuSign as it approaches its next earnings report date. On that day, DocuSign is projected to report earnings of $0.46 per share, which would represent year-over-year growth of 4.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $581.05 million, up 23.87% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.99 per share and revenue of $2.48 billion, which would represent changes of +0.51% and +17.52%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DocuSign is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 37.43 right now. This represents a premium compared to its industry's average Forward P/E of 20.32.
Also, we should mention that DOCU has a PEG ratio of 2.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.82 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% 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.