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DocuSign (DOCU) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest close session, DocuSign (DOCU - Free Report) was down 3.79% at $46.55. The stock's change was less than the S&P 500's daily gain of 1.46%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 2.03%.
Shares of the provider of electronic signature technology have appreciated by 2.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 19.39%, and the S&P 500's gain of 10.32%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is predicted to post an EPS of $1, indicating a 11.11% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $824.75 million, up 8% from the prior-year quarter.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $3.49 billion. These results would represent year-over-year changes of +15.36% and +8.39%, respectively.
It is also important to note the recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 2.11% higher. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 10.91. Its industry sports an average Forward P/E of 19.67, so one might conclude that DocuSign is trading at a discount comparatively.
One should further note that DOCU currently holds a PEG ratio of 0.73. 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. The Internet - Software industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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DocuSign (DOCU) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest close session, DocuSign (DOCU - Free Report) was down 3.79% at $46.55. The stock's change was less than the S&P 500's daily gain of 1.46%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 2.03%.
Shares of the provider of electronic signature technology have appreciated by 2.15% over the course of the past month, underperforming the Computer and Technology sector's gain of 19.39%, and the S&P 500's gain of 10.32%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is predicted to post an EPS of $1, indicating a 11.11% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $824.75 million, up 8% from the prior-year quarter.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $4.43 per share and revenue of $3.49 billion. These results would represent year-over-year changes of +15.36% and +8.39%, respectively.
It is also important to note the recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 2.11% higher. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 10.91. Its industry sports an average Forward P/E of 19.67, so one might conclude that DocuSign is trading at a discount comparatively.
One should further note that DOCU currently holds a PEG ratio of 0.73. 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. The Internet - Software industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.