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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
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In the latest market close, DocuSign (DOCU - Free Report) reached $38.69, with a -0.49% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.05%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw an increase of 1.64%.
Coming into today, shares of the provider of electronic signature technology had lost 6.36% in the past month. In that same time, the Business Services sector lost 3.71%, while the S&P 500 lost 2.21%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.64, marking a 12.28% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $689.17 million, up 6.77% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.62 per share and a revenue of $2.73 billion, indicating changes of +29.06% and +8.55%, respectively, from the former 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 14.83. For comparison, its industry has an average Forward P/E of 21.64, which means DocuSign is trading at a discount to the group.
It's also important to note that DOCU currently trades at a PEG ratio of 1.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.37.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
In the latest market close, DocuSign (DOCU - Free Report) reached $38.69, with a -0.49% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 1.05%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw an increase of 1.64%.
Coming into today, shares of the provider of electronic signature technology had lost 6.36% in the past month. In that same time, the Business Services sector lost 3.71%, while the S&P 500 lost 2.21%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.64, marking a 12.28% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $689.17 million, up 6.77% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.62 per share and a revenue of $2.73 billion, indicating changes of +29.06% and +8.55%, respectively, from the former 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 14.83. For comparison, its industry has an average Forward P/E of 21.64, which means DocuSign is trading at a discount to the group.
It's also important to note that DOCU currently trades at a PEG ratio of 1.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.37.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 81, putting it in the top 33% of all 250+ industries.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.