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DocuSign (DOCU) Dips More Than Broader Market: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $89.83, moving -1.62% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.39%. On the other hand, the Dow registered a loss of 0.27%, and the technology-centric Nasdaq decreased by 0.38%.

Coming into today, shares of the provider of electronic signature technology had gained 27.01% in the past month. In that same time, the Computer and Technology sector gained 19.26%, while the S&P 500 gained 13.07%.

Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to go public on June 5, 2025. In that report, analysts expect DocuSign to post earnings of $0.81 per share. This would mark a year-over-year decline of 1.22%. At the same time, our most recent consensus estimate is projecting a revenue of $746.98 million, reflecting a 5.26% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and revenue of $3.13 billion, which would represent changes of -2.54% and +5.2%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 past month, the Zacks Consensus EPS estimate has remained steady. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).

In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 26.37. This signifies a discount in comparison to the average Forward P/E of 28.98 for its industry.

Meanwhile, DOCU's PEG ratio is currently 5.99. 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. The average PEG ratio for the Internet - Software industry stood at 2.22 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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