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DocuSign (DOCU) closed the latest trading day at $75.42, indicating a -1.27% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.13%. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.
The provider of electronic signature technology's shares have seen a decrease of 10.77% over the last month, not keeping up with the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.
Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.81, marking a 1.22% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $746.98 million, indicating a 5.26% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.47 per share and a revenue of $3.13 billion, signifying shifts of -2.25% and +5.31%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.17% decrease. As of now, DocuSign holds a Zacks Rank of #3 (Hold).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 22.05. This signifies a discount in comparison to the average Forward P/E of 24.35 for its industry.
Also, we should mention that DOCU has a PEG ratio of 5.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.