DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, DocuSign (DOCU) closed at $80.33, marking a -1.33% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.07%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.18%. The provider of electronic signature technology's stock has climbed by 8.53% in the past month, exceeding the Computer and Technology sector's gain of 8.22% and the S&P 500's gain of 5.71%.Market participants will be closely following the financial results of DocuSign in its upcoming release. It is anticipated that the company will report an EPS of $0.84, marking a 13.4% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $778.96 million, up 5.83% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.54 per share and a revenue of $3.16 billion, representing changes of -0.28% and +6.05%, respectively, from the prior year. It is also important to note the recent changes to analyst estimates for DocuSign. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Over the past month, there's been a 1.61% rise in the Zacks Consensus EPS estimate. Right now, DocuSign possesses a Zacks Rank of #3 (Hold). From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 23.03. For comparison, its industry has an average Forward P/E of 29.49, which means DocuSign is trading at a discount to the group. It's also important to note that DOCU currently trades at a PEG ratio of 10.06. 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 2.22 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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. Should You Invest in Docusign Inc. (DOCU)?Before you invest in Docusign Inc. (DOCU), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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