DocuSign (DOCU) share declines as the market wins: What you need to know – October 20, 2021
During the last trading session, DocuSign (DOCU – Free Report) closed at $ 271.26, marking a movement of -0.6% from the previous day. This move fell behind the S&P 500’s 0.37% daily gain.
Prior to today’s stock exchange, shares of the electronic signature technology provider had gained 0.64% over the past month. This topped the 1.33% loss in the business services sector and lagged behind the 2.13% gain in the S&P 500 during that time frame.
DOCU will seek to display its strength as the next publication of its results approaches. In this report, analysts expect DOCU to post earnings of $ 0.46 per share. This would mark year-over-year growth of 109.09%. Our most recent consensus estimate projects quarterly revenue of $ 529.33 million, up 38.23% from the previous year.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 1.72 per share and revenue of $ 2.08 billion. These totals would mark changes of + 91.11% and + 43.37%, respectively, from a year ago.
Any recent changes to analysts’ estimates for DOCU should also be noted by investors. Recent revisions tend to reflect the latest short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Zacks’ ranking system ranges from # 1 (strong buy) to # 5 (strong sell). It has a remarkable, externally audited track record of success with # 1 stocks generating an average annual return of + 25% since 1988. Over the past 30 days, our consensus EPS forecast has remained stagnant. DOCU currently sports a Zacks rank of 4 (sell).
Digging into the valuation, DOCU currently has a forward P / E ratio of 158.66. This represents a premium over its industry’s average forward P / E of 28.16.
It should also be noted that DOCU currently has a PEG ratio of 3.39. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. The DOCU industry had an average PEG ratio of 1.82 at yesterday’s close.
The technology services industry is part of the business services sector. This industry currently has a Zacks Industry Rank of 153, which places it in the bottom 40% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
To follow DOCU in future trading sessions, be sure to use Zacks.com.