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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
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DocuSign (DOCU - Free Report) ended the recent trading session at $46.06, demonstrating a -1.67% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
The provider of electronic signature technology's shares have seen a decrease of 4.21% over the last month, not keeping up with the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is expected to report EPS of $1, up 11.11% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $824.75 million, indicating a 8% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.43 per share and a revenue of $3.49 billion, representing changes of +15.36% and +8.39%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 9.08% upward. As of now, DocuSign holds a Zacks Rank of #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 10.56. For comparison, its industry has an average Forward P/E of 18.83, which means DocuSign is trading at a discount to the group.
Also, we should mention that DOCU has a PEG ratio of 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.09 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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DocuSign (DOCU) Stock Sinks As Market Gains: Here's Why
DocuSign (DOCU - Free Report) ended the recent trading session at $46.06, demonstrating a -1.67% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
The provider of electronic signature technology's shares have seen a decrease of 4.21% over the last month, not keeping up with the Computer and Technology sector's gain of 9.34% and the S&P 500's gain of 5.98%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is expected to report EPS of $1, up 11.11% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $824.75 million, indicating a 8% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.43 per share and a revenue of $3.49 billion, representing changes of +15.36% and +8.39%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 9.08% upward. As of now, DocuSign holds a Zacks Rank of #3 (Hold).
Looking at its valuation, DocuSign is holding a Forward P/E ratio of 10.56. For comparison, its industry has an average Forward P/E of 18.83, which means DocuSign is trading at a discount to the group.
Also, we should mention that DOCU has a PEG ratio of 0.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.09 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.