DocuSign (DOCU) Outpaces Stock Market Gains: What You Should Know
DocuSign (DOCU) closed the most recent trading day at $290.89, moving +1.71% from the previous trading session.
DocuSign (DOCU) closed at $290.89 in the latest trading session, marking a +1.71% move from the prior day. This move outpaced the S&P 500's daily gain of 0.85%.
Prior to today's trading, shares of the provider of electronic signature technology had lost 7.29% over the past month. This has lagged the Business Services sector's loss of 1.96% and the S&P 500's gain of 2.85% in that time.
Investors will be hoping for strength from DOCU as it approaches its next earnings release, which is expected to be September 2, 2021. The company is expected to report EPS of $0.39, up 129.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $482.48 million, up 40.99% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $2.03 billion, which would represent changes of +86.67% and +40.05%, respectively, from the prior year.
Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DOCU currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DOCU has a Forward P/E ratio of 170.67 right now. Its industry sports an average Forward P/E of 31.1, so we one might conclude that DOCU is trading at a premium comparatively.
Investors should also note that DOCU has a PEG ratio of 3.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Technology Services stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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