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DocuSign (DOCU) Declines More Than Market: Some Information for Investors
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DocuSign (DOCU - Free Report) closed the latest trading day at $42.35, indicating a -0.91% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.
The provider of electronic signature technology's shares have seen an increase of 10.93% over the last month, surpassing the Business Services sector's gain of 8.93% and the S&P 500's gain of 7.49%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is scheduled to release its earnings on December 7, 2023. The company's earnings per share (EPS) are projected to be $0.61, reflecting a 7.02% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $689.17 million, indicating a 6.77% increase compared to the same quarter of the previous year.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +29.06% and +8.55%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DocuSign. Recent revisions tend to reflect the latest near-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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, DocuSign possesses a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 16.3. This denotes a discount relative to the industry's average Forward P/E of 25.41.
We can also see that DOCU currently has a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com.
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DocuSign (DOCU) Declines More Than Market: Some Information for Investors
DocuSign (DOCU - Free Report) closed the latest trading day at $42.35, indicating a -0.91% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.
The provider of electronic signature technology's shares have seen an increase of 10.93% over the last month, surpassing the Business Services sector's gain of 8.93% and the S&P 500's gain of 7.49%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is scheduled to release its earnings on December 7, 2023. The company's earnings per share (EPS) are projected to be $0.61, reflecting a 7.02% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $689.17 million, indicating a 6.77% increase compared to the same quarter of the previous year.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $2.62 per share and revenue of $2.73 billion. These results would represent year-over-year changes of +29.06% and +8.55%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DocuSign. Recent revisions tend to reflect the latest near-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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, DocuSign possesses a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 16.3. This denotes a discount relative to the industry's average Forward P/E of 25.41.
We can also see that DOCU currently has a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Technology Services was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com.