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DocuSign (DOCU) Stock Moves -1.09%: What You Should Know

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DocuSign (DOCU - Free Report) closed the most recent trading day at $38.96, moving -1.09% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.18% for the day. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.76%.

Prior to today's trading, shares of the provider of electronic signature technology had lost 4.67% over the past month. This has lagged the Business Services sector's loss of 4.13% and the S&P 500's loss of 3.35% in that time.

The upcoming earnings release of DocuSign will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.61, reflecting a 7.02% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $689.17 million, reflecting a 6.77% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.62 per share and revenue of $2.73 billion, indicating changes of +29.06% and +8.55%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, DocuSign is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, DocuSign is holding a Forward P/E ratio of 15.02. Its industry sports an average Forward P/E of 22.3, so one might conclude that DocuSign is trading at a discount comparatively.

It's also important to note that DOCU currently trades at a PEG ratio of 1.09. 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. As of the close of trade yesterday, the Technology Services industry held an average PEG ratio of 1.38.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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