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DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, DocuSign (DOCU - Free Report) closed at $76.66, marking a +2.69% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
Shares of the provider of electronic signature technology have appreciated by 8.08% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.92%, and the S&P 500's gain of 1.46%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is forecasted to report an EPS of $1.17, showcasing a 15.84% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $888.69 million, showing a 8.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.61 per share and a revenue of $3.5 billion, demonstrating changes of +20.05% and +8.79%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.88% higher. DocuSign presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 16.2. For comparison, its industry has an average Forward P/E of 20.63, which means DocuSign is trading at a discount to the group.
We can also see that DOCU currently has a PEG ratio of 1.28. 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 1.22.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, DocuSign (DOCU - Free Report) closed at $76.66, marking a +2.69% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 1.11%.
Shares of the provider of electronic signature technology have appreciated by 8.08% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.92%, and the S&P 500's gain of 1.46%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is forecasted to report an EPS of $1.17, showcasing a 15.84% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $888.69 million, showing a 8.59% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.61 per share and a revenue of $3.5 billion, demonstrating changes of +20.05% and +8.79%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.88% higher. DocuSign presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 16.2. For comparison, its industry has an average Forward P/E of 20.63, which means DocuSign is trading at a discount to the group.
We can also see that DOCU currently has a PEG ratio of 1.28. 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 1.22.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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.