DocuSign (DOCU) closed the most recent trading day at $56.90, moving -1.03% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.18% for the day. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 21.75% outpaced the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.33%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company is forecasted to report an EPS of $1.08, showcasing a 17.39% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $868.04 million, up 8.42% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.54 per share and revenue of $3.49 billion, which would represent changes of +18.23% and +10.61%, respectively, from the prior year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DocuSign presently features a Zacks Rank of #3 (Hold).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 12.66. This indicates a discount in contrast to its industry's Forward P/E of 21.6.
Also, we should mention that DOCU has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.21.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com.
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Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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