DocuSign (DOCU) closed the latest trading day at $83.69, indicating a -0.32% change from the previous session's end. This change was narrower than the S&P 500's 0.5% loss on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 1.21%.

The provider of electronic signature technology's stock has dropped by 8.34% in the past month, falling short of the Computer and Technology sector's loss of 3.19% and the S&P 500's loss of 0.47%.

Market participants will be closely following the financial results of DocuSign in its upcoming release. The company plans to announce its earnings on March 13, 2025. The company's earnings per share (EPS) are projected to be $0.84, reflecting a 10.53% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $759.96 million, indicating a 6.68% upward movement from the same quarter 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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, there's been no change in the Zacks Consensus EPS estimate. As of now, DocuSign holds a Zacks Rank of #3 (Hold).

Looking at its valuation, DocuSign is holding a Forward P/E ratio of 22.89. This signifies a discount in comparison to the average Forward P/E of 28.21 for its industry.

It's also important to note that DOCU currently trades at a PEG ratio of 2.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.25 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% 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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