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Docusign Inc. (DOCU) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been DocuSign (DOCU - Free Report) . Shares have been marching higher, with the stock up 20.3% over the past month. The stock hit a new 52-week high of $80.61 in the previous session. DocuSign has gained 17.4% since the start of the year compared to the 16.6% gain for the Zacks Computer and Technology sector and the 4.2% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, DocuSign reported EPS of $1.16 versus consensus estimate of $1.08.
For the current fiscal year, DocuSign is expected to post earnings of $4.61 per share on $3.5 in revenues. This represents a 20.05% change in EPS on a 8.79% change in revenues. For the next fiscal year, the company is expected to earn $5.21 per share on $3.79 in revenues. This represents a year-over-year change of 12.99% and 8.08%, respectively.
Valuation Metrics
Though DocuSign has recently hit a 52-week high, what is next for DocuSign? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
DocuSign has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.7X. On a trailing cash flow basis, the stock currently trades at 22X versus its peer group's average of 22X. Additionally, the stock has a PEG ratio of 1.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, DocuSign currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if DocuSign meets the list of requirements. Thus, it seems as though DocuSign shares could have potential in the weeks and months to come.
How Does DOCU Stack Up to the Competition?
Shares of DOCU have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AppFolio, Inc. (APPF - Free Report) . APPF has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. AppFolio, Inc. beat our consensus estimate by 2.40%, and for the current fiscal year, APPF is expected to post earnings of $6.90 per share on revenue of $1.12 billion.
Shares of AppFolio, Inc. have gained 8.5% over the past month, and currently trade at a forward P/E of 32.41X and a P/CF of 43.78X.
The Internet - Software industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DOCU and APPF, even beyond their own solid fundamental situation.
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Docusign Inc. (DOCU) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been DocuSign (DOCU - Free Report) . Shares have been marching higher, with the stock up 20.3% over the past month. The stock hit a new 52-week high of $80.61 in the previous session. DocuSign has gained 17.4% since the start of the year compared to the 16.6% gain for the Zacks Computer and Technology sector and the 4.2% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on September 3, 2026, DocuSign reported EPS of $1.16 versus consensus estimate of $1.08.
For the current fiscal year, DocuSign is expected to post earnings of $4.61 per share on $3.5 in revenues. This represents a 20.05% change in EPS on a 8.79% change in revenues. For the next fiscal year, the company is expected to earn $5.21 per share on $3.79 in revenues. This represents a year-over-year change of 12.99% and 8.08%, respectively.
Valuation Metrics
Though DocuSign has recently hit a 52-week high, what is next for DocuSign? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
DocuSign has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.7X. On a trailing cash flow basis, the stock currently trades at 22X versus its peer group's average of 22X. Additionally, the stock has a PEG ratio of 1.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, DocuSign currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if DocuSign meets the list of requirements. Thus, it seems as though DocuSign shares could have potential in the weeks and months to come.
How Does DOCU Stack Up to the Competition?
Shares of DOCU have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is AppFolio, Inc. (APPF - Free Report) . APPF has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. AppFolio, Inc. beat our consensus estimate by 2.40%, and for the current fiscal year, APPF is expected to post earnings of $6.90 per share on revenue of $1.12 billion.
Shares of AppFolio, Inc. have gained 8.5% over the past month, and currently trade at a forward P/E of 32.41X and a P/CF of 43.78X.
The Internet - Software industry is in the top 31% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DOCU and APPF, even beyond their own solid fundamental situation.