DocuSign (DOCU) ended the recent trading session at $74.35, demonstrating a +1.54% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.81%. Elsewhere, the Dow gained 1.56%, while the tech-heavy Nasdaq added 2.06%.

Shares of the provider of electronic signature technology have depreciated by 1.98% over the course of the past month, outperforming the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.

Market participants will be closely following the financial results of DocuSign in its upcoming release. On that day, DocuSign is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 1.22%. Simultaneously, our latest consensus estimate expects the revenue to be $746.98 million, showing a 5.26% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.47 per share and revenue of $3.13 billion, indicating changes of -2.25% and +5.31%, respectively, compared to the previous year.

Any recent changes to analyst estimates for DocuSign should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 16.54% downward. DocuSign currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, DocuSign is currently exchanging hands at a Forward P/E ratio of 21.11. This denotes a discount relative to the industry's average Forward P/E of 24.57.

We can additionally observe that DOCU currently boasts a PEG ratio of 3.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.85.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.

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.

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Docusign Inc. (DOCU) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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