DocuSign (DOCU) closed the most recent trading day at $49.02, moving +2.75% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq lost 0.51%.
The stock of provider of electronic signature technology has risen by 4.31% in the past month, lagging the Computer and Technology sector's gain of 12.26% and the S&P 500's gain of 5.58%.
Market participants will be closely following the financial results of DocuSign in its upcoming release. In that report, analysts expect DocuSign to post earnings of $1 per share. This would mark year-over-year growth of 11.11%. Meanwhile, our latest consensus estimate is calling for revenue of $824.75 million, up 8% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.43 per share and a revenue of $3.49 billion, indicating changes of +15.36% and +8.39%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for DocuSign. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. DocuSign is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, DocuSign is at present trading with a Forward P/E ratio of 10.76. This denotes a discount relative to the industry average Forward P/E of 17.45.
We can also see that DOCU currently has a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Docusign Inc. (DOCU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).