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DocuSign (DOCU) Outperforms Broader Market: What You Need to Know

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In the latest market close, DocuSign (DOCU - Free Report) reached $60.50, with a +0.47% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq increased by 0.65%.

The provider of electronic signature technology's stock has climbed by 8.11% in the past month, exceeding the Business Services sector's gain of 3.8% and the S&P 500's gain of 5.78%.

Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 6, 2024. It is anticipated that the company will report an EPS of $0.79, marking a 9.72% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $706.07 million, up 6.76% from the prior-year quarter.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $2.92 billion. These results would represent year-over-year changes of +8.72% and +5.77%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.16% higher. DocuSign is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 18.57. This represents a discount compared to its industry's average Forward P/E of 24.83.

We can additionally observe that DOCU currently boasts a PEG ratio of 1.4. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% of all 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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