DocuSign (DOCU) Stock Sinks As Market Gains: What You Should Know
DocuSign (DOCU) closed the most recent trading day at $227.80, moving -0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.33%.
Coming into today, shares of the provider of electronic signature technology had gained 11.41% in the past month. In that same time, the Business Services sector lost 11.5%, while the S&P 500 gained 3.42%.
DOCU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.11, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $360.50 million, up 44.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.53 per share and revenue of $1.39 billion. These totals would mark changes of +70.97% and +42.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for DOCU. Recent revisions tend to reflect the latest near-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.18% lower. DOCU currently has a Zacks Rank of #4 (Sell).
In terms of valuation, DOCU is currently trading at a Forward P/E ratio of 430.96. Its industry sports an average Forward P/E of 32.72, so we one might conclude that DOCU is trading at a premium comparatively.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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