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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
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DocuSign (DOCU - Free Report) closed the most recent trading day at $52.17, moving -1.95% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. On the other hand, the Dow registered a gain of 0.37%, and the technology-centric Nasdaq increased by 0.07%.
The the stock of provider of electronic signature technology has fallen by 4.4% in the past month, lagging the Business Services sector's gain of 5.59% and the S&P 500's gain of 5.3%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is expected to report EPS of $0.64, down 1.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $698.05 million, indicating a 5.83% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, DocuSign holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 18.68. This valuation marks a discount compared to its industry's average Forward P/E of 23.85.
Investors should also note that DOCU has a PEG ratio of 1.23 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
DocuSign (DOCU - Free Report) closed the most recent trading day at $52.17, moving -1.95% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. On the other hand, the Dow registered a gain of 0.37%, and the technology-centric Nasdaq increased by 0.07%.
The the stock of provider of electronic signature technology has fallen by 4.4% in the past month, lagging the Business Services sector's gain of 5.59% and the S&P 500's gain of 5.3%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is expected to report EPS of $0.64, down 1.54% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $698.05 million, indicating a 5.83% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, DocuSign holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 18.68. This valuation marks a discount compared to its industry's average Forward P/E of 23.85.
Investors should also note that DOCU has a PEG ratio of 1.23 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.45 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.