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DocuSign (DOCU) Stock Dips While Market Gains: Key Facts

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In the latest market close, DocuSign (DOCU - Free Report) reached $56.93, with a -0.68% movement compared to the previous day. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.1%.

The provider of electronic signature technology's stock has dropped by 0.05% in the past month, falling short of the Business Services sector's gain of 1.36% and the S&P 500's gain of 4.03%.

The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is slated to reveal its earnings on June 6, 2024. The company is forecasted to report an EPS of $0.79, showcasing a 9.72% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $706.07 million, indicating a 6.76% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.24 per share and a revenue of $2.92 billion, signifying shifts of +8.72% and +5.77%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.16% rise in the Zacks Consensus EPS estimate. At present, DocuSign boasts a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 17.68 right now. This denotes a discount relative to the industry's average Forward P/E of 23.46.

Investors should also note that DOCU has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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