DocuSign (DOCU - Free Report) closed the most recent trading day at $117.70, moving +1.91% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.15%. Meanwhile, the Dow gained 0.89%, and the Nasdaq, a tech-heavy index, added 1.42%.
Investors will be hoping for strength from DOCU as it approaches its next earnings release. The company is expected to report EPS of $0.11, up 57.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $284 million, up 32.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.53 per share and revenue of $1.31 billion, which would represent changes of +70.97% and +34.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DOCU. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, DOCU currently has a Forward P/E ratio of 216.74. Its industry sports an average Forward P/E of 27.15, so we one might conclude that DOCU is trading at a premium comparatively.
It is also worth noting that DOCU currently has a PEG ratio of 4.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 3.21 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.