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DocuSign (DOCU) Dips More Than Broader Market: What You Should Know
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In the latest trading session, DocuSign (DOCU - Free Report) closed at $68.40, marking a -4.13% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Shares of the provider of electronic signature technology witnessed a loss of 11.08% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $0.92, showcasing a 2.22% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $806.13 million, reflecting a 6.8% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.69 per share and a revenue of $3.19 billion, indicating changes of +3.94% and +7.14%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.13% higher. DocuSign currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 19.34. Its industry sports an average Forward P/E of 30.41, so one might conclude that DocuSign is trading at a discount comparatively.
Also, we should mention that DOCU has a PEG ratio of 1.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.12 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 83, this industry ranks in the top 34% 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.
To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.
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DocuSign (DOCU) Dips More Than Broader Market: What You Should Know
In the latest trading session, DocuSign (DOCU - Free Report) closed at $68.40, marking a -4.13% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow lost 1.9%, and the Nasdaq, a tech-heavy index, lost 3.56%.
Shares of the provider of electronic signature technology witnessed a loss of 11.08% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $0.92, showcasing a 2.22% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $806.13 million, reflecting a 6.8% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.69 per share and a revenue of $3.19 billion, indicating changes of +3.94% and +7.14%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.13% higher. DocuSign currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 19.34. Its industry sports an average Forward P/E of 30.41, so one might conclude that DocuSign is trading at a discount comparatively.
Also, we should mention that DOCU has a PEG ratio of 1.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.12 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 83, this industry ranks in the top 34% 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.
To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.