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DocuSign (DOCU) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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The latest trading session saw DocuSign (DOCU - Free Report) ending at $91.76, denoting a +0.44% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.28%.

The provider of electronic signature technology's stock has dropped by 3.68% in the past month, falling short of the Computer and Technology sector's gain of 1.24% and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 10.53% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $759.96 million, indicating a 6.68% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.53 per share and a revenue of $2.96 billion, representing changes of +18.46% and +7.19%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.86% increase. DocuSign presently features a Zacks Rank of #2 (Buy).

In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 25.9. This signifies a discount in comparison to the average Forward P/E of 29.01 for its industry.

Investors should also note that DOCU has a PEG ratio of 2.75 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. DOCU's industry had an average PEG ratio of 2.19 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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