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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, DocuSign (DOCU - Free Report) closed at $49.30, marking a +1.17% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 6.02%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 13.71% over the past month. This has lagged the Business Services sector's gain of 0.84% and the S&P 500's gain of 1.18% 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. 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. 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.
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 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 20.86. For comparison, its industry has an average Forward P/E of 20.93, which means DocuSign is trading at a discount to the group.
It is also worth noting that DOCU currently has a PEG ratio of 1.46. 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 1.63 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 160, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, DocuSign (DOCU - Free Report) closed at $49.30, marking a +1.17% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, added 6.02%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 13.71% over the past month. This has lagged the Business Services sector's gain of 0.84% and the S&P 500's gain of 1.18% 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. 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. 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.
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 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 20.86. For comparison, its industry has an average Forward P/E of 20.93, which means DocuSign is trading at a discount to the group.
It is also worth noting that DOCU currently has a PEG ratio of 1.46. 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 1.63 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 160, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.