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

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DocuSign (DOCU - Free Report) closed at $67.14 in the latest trading session, marking a -2.96% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.25% for the day. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.3%.

The provider of electronic signature technology's stock has dropped by 5.93% in the past month, falling short of the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71%.

Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.84, indicating a 13.4% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $778.96 million, reflecting a 5.83% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.54 per share and a revenue of $3.16 billion, signifying shifts of -0.28% and +6.05%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, DocuSign boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 19.57. This valuation marks a discount compared to its industry average Forward P/E of 28.45.

Meanwhile, DOCU's PEG ratio is currently 8.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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