The most recent trading session ended with DocuSign (DOCU) standing at $72.50, reflecting a -0.14% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.02%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.04%.
Coming into today, shares of the provider of electronic signature technology had gained 28.18% in the past month. In that same time, the Business Services sector gained 3.66%, while the S&P 500 gained 3.77%.
The upcoming earnings release of DocuSign will be of great interest to investors. The company is predicted to post an EPS of $0.86, indicating an 8.86% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $743.43 million, indicating a 6.14% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.45 per share and a revenue of $2.94 billion, signifying shifts of +15.77% and +6.46%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.31% upward. DocuSign is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 21.03 right now. This expresses a discount compared to the average Forward P/E of 25.74 of its industry.
It is also worth noting that DOCU currently has a PEG ratio of 2.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Technology Services industry had an average PEG ratio of 1.55 as trading concluded yesterday.
The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
