In the latest close session, DocuSign (DOCU) was down 5.86% at $42.88. This move lagged the S&P 500's daily loss of 0.11%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.35%.
Shares of the provider of electronic signature technology witnessed a loss of 2% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.88%, and the S&P 500's gain of 0.51%.
Analysts and investors alike will be keeping a close eye on the performance of DocuSign in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1, marking a 11.11% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $824.75 million, reflecting a 8% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.43 per share and a revenue of $3.49 billion, signifying shifts of +15.36% and +8.39%, respectively, from the last year.
Investors should also pay attention to any latest changes in 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 9.08% rise in the Zacks Consensus EPS estimate. DocuSign presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DocuSign is currently trading at a Forward P/E ratio of 10.27. This denotes a discount relative to the industry average Forward P/E of 17.88.
One should further note that DOCU currently holds a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 1 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Docusign Inc. (DOCU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).