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The latest trading session saw DocuSign (DOCU) ending at $90.86, denoting a +0.42% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.98%.
Heading into today, shares of the provider of electronic signature technology had gained 0.07% over the past month, outpacing the Computer and Technology sector's loss of 0.79% and lagging the S&P 500's gain of 2.07% in that time.
Market participants will be closely following the financial results of DocuSign in its upcoming release. On that day, DocuSign is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 10.53%. Meanwhile, our latest consensus estimate is calling for revenue of $759.96 million, up 6.68% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 24.66. For comparison, its industry has an average Forward P/E of 30.68, which means DocuSign is trading at a discount to the group.
We can also see that DOCU currently has a PEG ratio of 2.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.34.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.