In the latest trading session, DocuSign (DOCU) closed at $220.17, marking a +0.16% move from the previous day. This change outpaced the S&P 500's 1.86% loss on the day. Meanwhile, the Dow lost 2.3%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Coming into today, shares of the provider of electronic signature technology had gained 7.83% in the past month. In that same time, the Business Services sector lost 8.46%, while the S&P 500 gained 7.63%.
DOCU will be looking to display strength as it nears its next earnings release. In that report, analysts expect DOCU to post earnings of $0.11 per share. This would mark no growth from the year-ago period. Meanwhile, our latest consensus estimate is calling for revenue of $360.50 million, up 44.49% from the prior-year quarter.
DOCU's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $1.39 billion. These results would represent year-over-year changes of +70.97% and +42.38%, respectively.
Any recent changes to analyst estimates for DOCU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 6.18% lower within the past month. DOCU is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 414.76. For comparison, its industry has an average Forward P/E of 32.42, which means DOCU is trading at a premium to the group.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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