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DocuSign (DOCU) closed at $82.83 in the latest trading session, marking a +1.42% move from the prior day. This move outpaced the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 1.26%.
Shares of the provider of electronic signature technology have depreciated by 4.65% over the course of the past month, outperforming the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. The company's upcoming EPS is projected at $0.81, signifying a 1.22% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $746.98 million, reflecting a 5.26% rise from the equivalent quarter last year.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $3.46 per share and revenue of $3.13 billion. These results would represent year-over-year changes of -2.54% and +5.2%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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, there's been a 1.56% fall in the Zacks Consensus EPS estimate. DocuSign is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 23.59. For comparison, its industry has an average Forward P/E of 25.94, which means DocuSign is trading at a discount to the group.
One should further note that DOCU currently holds a PEG ratio of 5.36. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.13.