Why DocuSign (DOCU) Dipped More Than Broader Market Today

Company Performance - DocuSign (DOCU) closed at $68.98, down 1.67% from the previous trading session, underperforming the S&P 500, which lost 0.33% [1] - The stock has increased by 14.21% over the past month, outperforming the Computer and Technology sector's gain of 2.83% and the S&P 500's gain of 1.83% [1] Upcoming Earnings - DocuSign is expected to report an EPS of $0.86, reflecting an 8.86% increase from the same quarter last year [2] - Revenue is projected to be $743.38 million, indicating a 6.13% rise from the equivalent quarter last year [2] Full-Year Estimates - Zacks Consensus Estimates forecast earnings of $3.45 per share and revenue of $2.94 billion for the full year, representing year-over-year changes of +15.77% and +6.46%, respectively [3] - Recent changes to analyst estimates may indicate a positive outlook for the company's business and profitability [3] Valuation Metrics - DocuSign is currently trading with a Forward P/E ratio of 20.32, which is lower than the industry average of 31.33 [6] - The PEG ratio for DOCU is 2.18, compared to the industry average PEG ratio of 2.17 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 83, placing it in the top 33% of over 250 industries [7] - Strong industry rankings correlate with better performance, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]