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

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In the latest trading session, DocuSign (DOCU - Free Report) closed at $49.49, marking a +0.1% move from the previous day. This move outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.

Heading into today, shares of the provider of electronic signature technology had lost 15.2% over the past month, lagging the Business Services sector's gain of 1.06% and the S&P 500's gain of 5.1% in that time.

DocuSign will be looking to display strength as it nears its next earnings release. In that report, analysts expect DocuSign to post earnings of $0.53 per share. This would mark 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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $2.7 billion, which would represent changes of +15.27% and +7.3%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DocuSign. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DocuSign is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, DocuSign currently has a Forward P/E ratio of 21.17. Its industry sports an average Forward P/E of 21.17, so we one might conclude that DocuSign is trading at a no noticeable deviation comparatively.

Also, we should mention that DOCU has a PEG ratio of 1.48. 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 was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.

To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.


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