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DocuSign (DOCU) Stock Moves 1.76%: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $55.97, moving +1.76% from the previous trading session. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.

Heading into today, shares of the provider of electronic signature technology had gained 11.13% over the past month, outpacing the Business Services sector's gain of 1.13% and the S&P 500's gain of 1.03% in that time.

DocuSign will be looking to display strength as it nears its next earnings release, which is expected to be June 8, 2023. The company is expected to report EPS of $0.54, up 42.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $641.2 million, up 8.92% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $2.7 billion. These totals would mark changes of +15.76% and +7.32%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for DocuSign. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 5.95% higher within the past month. 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 23.37. This represents a premium compared to its industry's average Forward P/E of 22.78.

We can also see that DOCU currently has a PEG ratio of 1.63. 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. DOCU's industry 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 group has a Zacks Industry Rank of 108, putting 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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