DocuSign (DOCU) ended the recent trading session at $81.42, demonstrating a +1.41% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Shares of the provider of electronic signature technology have appreciated by 20.25% over the course of the past month, outperforming the Computer and Technology sector's loss of 2.67%, and the S&P 500's gain of 0.97%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.17, showcasing a 15.84% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $888.69 million, up 8.59% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.61 per share and revenue of $3.5 billion. These totals would mark changes of +20.05% and +8.79%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.88% higher. As of now, DocuSign holds a Zacks Rank of #2 (Buy).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 17.42. This valuation marks a discount compared to its industry average Forward P/E of 20.7.
Also, we should mention that DOCU has a PEG ratio of 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Docusign Inc. (DOCU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).