DocuSign (DOCU) ended the recent trading session at $49.87, demonstrating a +1.4% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 1.55%.
The provider of electronic signature technology's shares have seen an increase of 9.22% over the last month, surpassing the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.
The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. The company is forecasted to report an EPS of $1.08, showcasing a 17.39% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $868.04 million, up 8.42% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.54 per share and a revenue of $3.49 billion, demonstrating changes of +18.23% and +8.53%, respectively, from the preceding year.
Any recent changes to analyst estimates for DocuSign should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the past month, there's been a 1% rise in the Zacks Consensus EPS estimate. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 10.83 right now. This expresses a discount compared to the average Forward P/E of 19.66 of its industry.
Meanwhile, DOCU's PEG ratio is currently 0.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.07.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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).