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DocuSign (DOCU) Dips More Than Broader Markets: What You Should Know

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DocuSign (DOCU - Free Report) closed at $53.47 in the latest trading session, marking a -1.71% move from the prior day. This change lagged the S&P 500's 0.73% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 7.92%.

Coming into today, shares of the provider of electronic signature technology had gained 10.68% in the past month. In that same time, the Business Services sector gained 0.91%, while the S&P 500 gained 0.5%.

Investors will be hoping for strength from DocuSign as it approaches its next earnings release, which is expected to be June 8, 2023. 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.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $2.7 billion. These results would represent year-over-year changes of +15.27% and +7.3%, respectively.

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

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.

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 currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 23.29. For comparison, its industry has an average Forward P/E of 22.78, which means DocuSign is trading at a premium to the group.

We can also see that DOCU currently has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 1.75 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 113, putting it in the top 45% 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

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