DocuSign (DOCU) closed the most recent trading day at $47.87, moving -0.21% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq added 0.06%.
Coming into today, shares of the provider of electronic signature technology had lost 7.43% in the past month. In that same time, the Business Services sector lost 3.82%, while the S&P 500 lost 2.85%.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release, which is expected to be September 7, 2023. In that report, analysts expect DocuSign to post earnings of $0.65 per share. This would mark year-over-year growth of 47.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $676.75 million, up 8.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.51 per share and revenue of $2.72 billion. These totals would mark changes of +23.65% and +8.09%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. DocuSign currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, DocuSign currently has a Forward P/E ratio of 19.13. This represents a discount compared to its industry's average Forward P/E of 21.31.
Meanwhile, DOCU's PEG ratio is currently 1.44. 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 1.44 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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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