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DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, DocuSign (DOCU - Free Report) closed at $53.78, marking a -1.25% move from the previous day. This change lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Heading into today, shares of the provider of electronic signature technology had lost 6.94% over the past month, lagging the Business Services sector's gain of 2.34% and the S&P 500's gain of 5.67% in that time.
DocuSign will be looking to display strength as it nears its next earnings release. On that day, DocuSign is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 39.47%. Our most recent consensus estimate is calling for quarterly revenue of $641.17 million, up 8.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $2.7 billion. These totals would mark changes of +15.27% and +7.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DocuSign. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 14.97% higher. DocuSign is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 23.32. For comparison, its industry has an average Forward P/E of 20.74, which means DocuSign is trading at a premium to the group.
Meanwhile, DOCU's PEG ratio is currently 1.63. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
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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DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, DocuSign (DOCU - Free Report) closed at $53.78, marking a -1.25% move from the previous day. This change lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Heading into today, shares of the provider of electronic signature technology had lost 6.94% over the past month, lagging the Business Services sector's gain of 2.34% and the S&P 500's gain of 5.67% in that time.
DocuSign will be looking to display strength as it nears its next earnings release. On that day, DocuSign is projected to report earnings of $0.53 per share, which would represent year-over-year growth of 39.47%. Our most recent consensus estimate is calling for quarterly revenue of $641.17 million, up 8.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $2.7 billion. These totals would mark changes of +15.27% and +7.3%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DocuSign. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 14.97% higher. DocuSign is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 23.32. For comparison, its industry has an average Forward P/E of 20.74, which means DocuSign is trading at a premium to the group.
Meanwhile, DOCU's PEG ratio is currently 1.63. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.