DocuSign (DOCU) closed at $81.70 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's 1.76% loss on the day. On the other hand, the Dow registered a loss of 1.48%, and the technology-centric Nasdaq decreased by 2.64%.

The provider of electronic signature technology's stock has dropped by 14.02% in the past month, falling short of the Computer and Technology sector's loss of 4.55% and the S&P 500's loss of 1.26%.

Investors will be eagerly watching for the performance of DocuSign in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 13, 2025. The company is expected to report EPS of $0.84, up 10.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $759.96 million, up 6.68% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for DocuSign. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DocuSign is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note DocuSign's current valuation metrics, including its Forward P/E ratio of 22.67. This indicates a discount in contrast to its industry's Forward P/E of 27.87.

Meanwhile, DOCU's PEG ratio is currently 2.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.04 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Docusign Inc. (DOCU) : Free Stock Analysis Report

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

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