DocuSign (DOCU) Increases Despite Market Slip: Here's What You Need to Know

In the latest trading session, DocuSign (DOCU) closed at $88.29, marking a +0.42% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.27%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.03%.Shares of the provider of electronic signature technology have depreciated by 2.41% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.69% and the S&P 500's gain of 4.27%.The investment community will be closely monitoring the performance of DocuSign in its forthcoming earnings report. On that day, DocuSign is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 10.53%. Meanwhile, the latest consensus estimate predicts the revenue to be $759.96 million, indicating a 6.68% increase compared to the same quarter of the previous year.It is also important to note the recent changes to analyst estimates for DocuSign. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, DocuSign holds a Zacks Rank of #3 (Hold).With respect to valuation, DocuSign is currently being traded at a Forward P/E ratio of 23.97. For comparison, its industry has an average Forward P/E of 31.7, which means DocuSign is trading at a discount to the group.We can also see that DOCU currently has a PEG ratio of 2.54. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.35 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 72, placing it within the top 29% 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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks