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DocuSign (DOCU) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, DocuSign (DOCU - Free Report) closed at $64.95, marking a -1.86% move from the previous day. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 14.01% over the past month. This has outpaced the Business Services sector's gain of 7.44% and the S&P 500's gain of 7% in that time.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release. The company is expected to report EPS of $0.53, up 10.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $639.39 million, up 10.08% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 30.75. This represents a premium compared to its industry's average Forward P/E of 22.98.
Also, we should mention that DOCU has a PEG ratio of 2.25. 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 was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DocuSign (DOCU) Dips More Than Broader Markets: What You Should Know
In the latest trading session, DocuSign (DOCU - Free Report) closed at $64.95, marking a -1.86% move from the previous day. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 14.01% over the past month. This has outpaced the Business Services sector's gain of 7.44% and the S&P 500's gain of 7% in that time.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release. The company is expected to report EPS of $0.53, up 10.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $639.39 million, up 10.08% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 30.75. This represents a premium compared to its industry's average Forward P/E of 22.98.
Also, we should mention that DOCU has a PEG ratio of 2.25. 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 was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.