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DocuSign (DOCU) Stock Moves -0.99%: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $119.07, moving -0.99% from the previous trading session. This change was narrower than the S&P 500's 1.75% loss on the day. At the same time, the Dow lost 2.18%, and the tech-heavy Nasdaq lost 1.55%.

Wall Street will be looking for positivity from DOCU as it approaches its next earnings report date. The company is expected to report EPS of $0.11, up 57.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $284 million, up 32.74% from the year-ago period.

DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $1.31 billion. These results would represent year-over-year changes of +70.97% and +34.43%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. DOCU is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 225.69 right now. For comparison, its industry has an average Forward P/E of 26.63, which means DOCU is trading at a premium to the group.

Investors should also note that DOCU has a PEG ratio of 4.83 right now. 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. DOCU's industry had an average PEG ratio of 3.07 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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