Why DocuSign (DOCU) Outpaced the Stock Market Today

In the latest trading session, DocuSign (DOCU) closed at $70.15, marking a +0.82% move from the previous day. This change outpaced the S&P 500's 0.16% gain on the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq increased by 0.78%.Prior to today's trading, shares of the provider of electronic signature technology had gained 12.06% over the past month. This has outpaced the Business Services sector's gain of 2.81% and the S&P 500's gain of 1.67% in that time.Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company is expected to report EPS of $0.86, up 8.86% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $743.38 million, showing a 6.13% escalation compared to the year-ago quarter.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.45 per share and revenue of $2.94 billion. These totals would mark changes of +15.77% and +6.46%, respectively, from last 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. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, DocuSign possesses a Zacks Rank of #1 (Strong Buy).Digging into valuation, DocuSign currently has a Forward P/E ratio of 20.15. This signifies a discount in comparison to the average Forward P/E of 25.35 for its industry.It is also worth noting that DOCU currently has a PEG ratio of 2.16. 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. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.48.The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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