Cloud-based software provider DocuSign (DOCU Quick QuoteDOCU - Free Report) is set to report first-quarter earnings results on Thursday after the bell. The stock has lagged other tech stocks this year, as high competition and increased expenses have kept shares under pressure.

Still, DocuSign, a Zacks Rank #5 (Strong Sell), has seen buyers return ahead of the announcement. But given weakness this year, is DOCU a buy?

DOCU has surpassed earnings estimates in three of the past four quarters, with an average beat of 12.26% over that timeframe. The company is expected to post a Q1 profit of $0.53/share, which would translate to a 39.47% increase versus the same quarter last year. Revenues are projected to have risen 8.91% to $641.15 million during the first quarter.

Earnings estimates have been relatively stagnant as of late, with no change for the first quarter in over 60 days. DocuSign stock remains relatively overvalued compared to its industry group. Despite a beat during the company’s fiscal fourth quarter announcement back in March, shares plunged more than 20% the following day.

Investors should proceed with caution and remember that it’s not necessarily about the results themselves, but management guidance and the market’s reaction as well.