DocuSign (DOCU) ended the recent trading session at $79.52, demonstrating a +1.47% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 1.04%.
Heading into today, shares of the provider of electronic signature technology had gained 9.18% over the past month, outpacing the Computer and Technology sector's gain of 0.18% and the S&P 500's gain of 0.62% in that time.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is slated to reveal its earnings on December 5, 2024. On that day, DocuSign is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 8.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $743.38 million, up 6.13% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.45 per share and a revenue of $2.94 billion, demonstrating changes of +15.77% and +6.46%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained unchanged. DocuSign presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 22.7. Its industry sports an average Forward P/E of 30.4, so one might conclude that DocuSign is trading at a discount comparatively.
Investors should also note that DOCU has a PEG ratio of 2.43 right now. 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 2.41 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Docusign Inc. (DOCU) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
