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The latest trading session saw DocuSign (DOCU) ending at $92.26, denoting a +0.72% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.46%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 3.07%.
Heading into today, shares of the provider of electronic signature technology had lost 1.51% over the past month, lagging the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 1.08% in that time.
Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. 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. In the meantime, our current consensus estimate forecasts the revenue to be $759.96 million, indicating a 6.68% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.53 per share and a revenue of $2.96 billion, representing changes of +18.46% and +7.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.86% rise in the Zacks Consensus EPS estimate. DocuSign is currently a Zacks Rank #2 (Buy).
With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 25.97. This signifies a discount in comparison to the average Forward P/E of 30.73 for its industry.
Meanwhile, DOCU's PEG ratio is currently 2.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.