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The most recent trading session ended with DocuSign (DOCU) standing at $81.75, reflecting a -0.63% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the provider of electronic signature technology had lost 0.51% in the past month. In that same time, the Computer and Technology sector gained 1.15%, while the S&P 500 lost 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.81, indicating a 1.22% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $746.98 million, up 5.26% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.46 per share and a revenue of $3.13 billion, indicating changes of -2.54% and +5.2%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.56% lower. Right now, DocuSign possesses a Zacks Rank of #3 (Hold).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 23.76. This indicates a discount in contrast to its industry's Forward P/E of 26.51.
It's also important to note that DOCU currently trades at a PEG ratio of 5.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 2.15 at the close of the market yesterday.