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DocuSign (DOCU) ended the recent trading session at $91.16, demonstrating a -0.2% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.89%.
Shares of the provider of electronic signature technology have depreciated by 1.48% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 10.53% growth compared to the equivalent quarter last 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.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $3.53 per share and revenue of $2.96 billion. These results would represent year-over-year changes of +18.46% and +7.19%, respectively.
Investors should also note any recent changes to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.86% higher within the past month. DocuSign is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 25.89. This indicates a discount in contrast to its industry's Forward P/E of 28.24.
One should further note that DOCU currently holds a PEG ratio of 2.75. 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. The Internet - Software industry had an average PEG ratio of 2.19 as trading concluded yesterday.