DocuSign (DOCU) Stock Falls Amid Market Uptick: What Investors Need to Know

DocuSign (DOCU) closed the most recent trading day at $68.85, moving -1.15% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.21%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq lost 0.25%. Shares of the provider of electronic signature technology have appreciated by 0.29% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.68%, and the S&P 500's gain of 4.36%.The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. In that report, analysts expect DocuSign to post earnings of $0.92 per share. This would mark year-over-year growth of 2.22%. Meanwhile, the latest consensus estimate predicts the revenue to be $806.13 million, indicating a 6.8% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $3.69 per share and a revenue of $3.2 billion, demonstrating changes of +3.94% and +7.34%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for DocuSign. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. As of now, DocuSign holds a Zacks Rank of #2 (Buy). Looking at its valuation, DocuSign is holding a Forward P/E ratio of 18.88. This represents a discount compared to its industry average Forward P/E of 29.72. Meanwhile, DOCU's PEG ratio is currently 1.28. 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. The average PEG ratio for the Internet - Software industry stood at 2.06 at the close of the market yesterday. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want 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