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DocuSign (DOCU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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DocuSign (DOCU - Free Report) closed at $73.55 in the latest trading session, marking a -3.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
Shares of the provider of electronic signature technology have appreciated by 0.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.24%, and the S&P 500's gain of 4.07%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $778.96 million, indicating a 5.83% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.61% rise in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 21.6. This signifies a discount in comparison to the average Forward P/E of 28.6 for its industry.
One should further note that DOCU currently holds a PEG ratio of 9.43. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.21.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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DocuSign (DOCU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
DocuSign (DOCU - Free Report) closed at $73.55 in the latest trading session, marking a -3.68% move from the prior day. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
Shares of the provider of electronic signature technology have appreciated by 0.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.24%, and the S&P 500's gain of 4.07%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $778.96 million, indicating a 5.83% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.61% rise in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 21.6. This signifies a discount in comparison to the average Forward P/E of 28.6 for its industry.
One should further note that DOCU currently holds a PEG ratio of 9.43. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.21.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.