Yahoo Finance DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know
DocuSign (DOCU) closed at $43.86 in the latest trading session, marking a -0.72% move from the prior day. This move lagged the S&P 500's daily gain of 1.36%.
Heading into today, shares of the provider of electronic signature technology had lost 8.85% over the past month, lagging the Business Services sector's gain of 6.13% and the S&P 500's gain of 5.44% in that time.
Investors will be hoping for strength from DocuSign as it approaches its next earnings release, which is expected to be December 8, 2022. In that report, analysts expect DocuSign to post earnings of $0.41 per share. This would mark a year-over-year decline of 29.31%. Our most recent consensus estimate is calling for quarterly revenue of $626.04 million, up 14.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.63 per share and revenue of $2.48 billion. These totals would mark changes of -17.68% and +17.54%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. DocuSign currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DocuSign has a Forward P/E ratio of 27.06 right now. Its industry sports an average Forward P/E of 21.51, so we one might conclude that DocuSign is trading at a premium comparatively.
We can also see that DOCU currently has a PEG ratio of 1.01. 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. Technology Services stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 45% 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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DocuSign (DOCU) : Free Stock Analysis Report
