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DocuSign (DOCU) Registers a Bigger Fall Than the Market: Important Facts to Note
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DocuSign (DOCU - Free Report) closed at $47.04 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Shares of the provider of electronic signature technology witnessed a gain of 8.25% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.58%, and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 17.39% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $868.04 million, up 8.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.54 per share and a revenue of $3.49 billion, representing changes of +18.23% and +8.53%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1% higher within the past month. DocuSign currently has a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 18.63, which means DocuSign is trading at a discount to the group.
Meanwhile, DOCU's PEG ratio is currently 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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DocuSign (DOCU) Registers a Bigger Fall Than the Market: Important Facts to Note
DocuSign (DOCU - Free Report) closed at $47.04 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow experienced a drop of 0.97%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Shares of the provider of electronic signature technology witnessed a gain of 8.25% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.58%, and the S&P 500's gain of 0.42%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 17.39% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $868.04 million, up 8.42% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.54 per share and a revenue of $3.49 billion, representing changes of +18.23% and +8.53%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1% higher within the past month. DocuSign currently has a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 10.55. For comparison, its industry has an average Forward P/E of 18.63, which means DocuSign is trading at a discount to the group.
Meanwhile, DOCU's PEG ratio is currently 0.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.