In the latest market close, DocuSign (DOCU) reached $81.81, with a -0.8% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow saw an upswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.26%.
Prior to today's trading, shares of the provider of electronic signature technology had gained 17.75% over the past month. This has outpaced the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 2.99% in that time.
Market participants will be closely following the financial results of DocuSign in its upcoming release. On that day, DocuSign is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 8.86%. In the meantime, our current consensus estimate forecasts the revenue to be $743.38 million, indicating a 6.13% growth compared to the corresponding quarter of the prior year.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DocuSign presently features a Zacks Rank of #3 (Hold).
Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 23.89. For comparison, its industry has an average Forward P/E of 32.89, which means DocuSign is trading at a discount to the group.
It's also important to note that DOCU currently trades at a PEG ratio of 2.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DOCU's industry had an average PEG ratio of 2.46 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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