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DocuSign (DOCU) Suffers a Larger Drop Than the General Market: Key Insights
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DocuSign (DOCU - Free Report) closed at $40.08 in the latest trading session, marking a -0.47% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
Shares of the provider of electronic signature technology witnessed a loss of 2.96% over the previous month, beating the performance of the Business Services sector with its loss of 5.22% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 7.02% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $689.17 million, showing a 6.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $2.73 billion, demonstrating changes of +29.06% and +8.55%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.6% higher. DocuSign is currently a Zacks Rank #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 15.36. This signifies a discount in comparison to the average Forward P/E of 22.05 for its industry.
We can also see that DOCU currently has a PEG ratio of 1.11. 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 1.39 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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DocuSign (DOCU) Suffers a Larger Drop Than the General Market: Key Insights
DocuSign (DOCU - Free Report) closed at $40.08 in the latest trading session, marking a -0.47% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.
Shares of the provider of electronic signature technology witnessed a loss of 2.96% over the previous month, beating the performance of the Business Services sector with its loss of 5.22% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 7.02% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $689.17 million, showing a 6.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.62 per share and a revenue of $2.73 billion, demonstrating changes of +29.06% and +8.55%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.6% higher. DocuSign is currently a Zacks Rank #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 15.36. This signifies a discount in comparison to the average Forward P/E of 22.05 for its industry.
We can also see that DOCU currently has a PEG ratio of 1.11. 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 1.39 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.