DocuSign (DOCU) Falls More Steeply Than Broader Market: What Investors Need to Know

DocuSign (DOCU) closed the most recent trading day at $67.12, moving -1.16% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 0.47%. Heading into today, shares of the provider of electronic signature technology had lost 19.65% over the past month, lagging the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92%.The upcoming earnings release of DocuSign will be of great interest to investors. The company is expected to report EPS of $0.92, up 2.22% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $806.13 million, indicating a 6.8% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.69 per share and revenue of $3.2 billion, indicating changes of +3.94% and +7.34%, respectively, compared to the previous year. It is also important to note the recent changes to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.13% upward. DocuSign is holding a Zacks Rank of #1 (Strong Buy) right now. With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 18.4. This expresses a discount compared to the average Forward P/E of 29.25 of its industry. It is also worth noting that DOCU currently has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 26% of over 250 industries. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow DOCU in the coming trading sessions, be sure to utilize Zacks.com. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docusign Inc. (DOCU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks