In the latest trading session, DocuSign (DOCU - Free Report) closed at $83.58, marking a +0.63% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq added 0.17%.
Heading into today, shares of the provider of electronic signature technology had gained 10.85% over the past month, outpacing the Business Services sector's loss of 4.85% and the S&P 500's loss of 4.88% in that time.
Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. This is expected to be March 12, 2020. The company is expected to report EPS of $0.05, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $267.44 million, up 33.9% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for DOCU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DOCU is currently a Zacks Rank #3 (Hold).
Investors should also note DOCU's current valuation metrics, including its Forward P/E ratio of 207.65. For comparison, its industry has an average Forward P/E of 23.33, which means DOCU is trading at a premium to the group.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.