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DocuSign (DOCU) ended the recent trading session at $90.42, demonstrating a +1.02% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.54%. Meanwhile, the Dow lost 1.63%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 5.3% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's loss of 2.2% in that time.
The upcoming earnings release of DocuSign will be of great interest to investors. It is anticipated that the company will report an EPS of $0.84, marking a 10.53% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $759.96 million, reflecting a 6.68% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.53 per share and revenue of $2.96 billion, indicating changes of +18.46% and +7.19%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.86% higher within the past month. DocuSign is currently a Zacks Rank #2 (Buy).
In terms of valuation, DocuSign is presently being traded at a Forward P/E ratio of 25.38. For comparison, its industry has an average Forward P/E of 28.07, which means DocuSign is trading at a discount to the group.
We can additionally observe that DOCU currently boasts a PEG ratio of 2.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.