DocuSign (DOCU) ended the recent trading session at $96.50, demonstrating a -0.24% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.28%, and the technology-dominated Nasdaq saw a decrease of 1.2%.

The provider of electronic signature technology's shares have seen an increase of 7.23% over the last month, surpassing the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of DocuSign in its upcoming release. In that report, analysts expect DocuSign to post earnings of $0.84 per share. This would mark year-over-year growth of 10.53%. Meanwhile, our latest consensus estimate is calling for revenue of $759.96 million, up 6.68% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for DocuSign. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. DocuSign currently has a Zacks Rank of #2 (Buy).

Looking at valuation, DocuSign is presently trading at a Forward P/E ratio of 27.42. This valuation marks a discount compared to its industry's average Forward P/E of 31.48.

It is also worth noting that DOCU currently has a PEG ratio of 2.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.24.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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