By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. And that one big risk prevents DOCU stock from being a buy here. Docusign Inc stock has gained 239.05% over the last 12 months, and the average rating from Wall Street analysts is a Strong Buy.InvestorsObserver’s proprietary ranking system, gives DOCU stock a score of 69 out of a possible 100.. That rank is influenced by a short-term technical score of 95. After the P/E ratio, it's one of the most common valuation metrics. A P/B of 0.5 means its selling at half its book value. A ratio of 1 means a company's assets are equal to its liabilities. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. In the same way as when we have to buy shares, choosing when is the best time to sell is not a whimsy decision, and we must use our own trading strategy. DocuSign (DOCU) closed at $102.79 in the latest trading session, marking a -1.11% move from the prior day. The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. By STEPHEN GUILFOYLE Dec 04, 2020 | 10:13 AM EST. Want the latest recommendations from Zacks Investment Research? $233.60 Delayed quotes by Sungard. The 20 day average establishes this baseline. ET by Barron's DocuSign stock surges after Morgan Stanley upgrade If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. The VGM score is based on the trading styles of Growth, VAlue, and Momentum. DocuSign Inc. is based in San Francisco, United States. Momentum Style - Learn more about the Momentum Style. It's calculated as earnings divided by price. The scores are based on the trading styles of Value, Growth, and Momentum. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. That does not mean that all companies with large growth rates will have a favorable Growth Score. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. Zacks Style Scores Education - Learn more about the Zacks Style Scores. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. The price is trading near to the upper Bollinger band, signaling some level of overbought in recent sessions. We use cookies to understand how you use our site and to improve your experience. There are 17 Sectors, 60 different M Industries, and 265 X Industries. This is a longer-term price change metric. Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity. A higher number is better than a lower number. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. A positive change in the cash flow is desired and shows that more 'cash' is coming in than 'cash' going out. The technique has proven to be very useful for finding positive surprises. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values. This includes personalizing content and advertising. This is a medium-term price change metric. Averaging all price targets exposed below, the estimated price for DocuSign stock is $270.13. How much a stock will be priced tomorrow or next week is quite unpredictable. DocuSign, Inc. provides cloud based software in the United States and internationally. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. DocuSign Stock. Do you know when is it time to sell DocuSign?. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast. The financial health and growth prospects of DOCU, demonstrate its potential to outperform the market. There’s no denying that DocuSign stock is … Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. The stock sports a lofty price-to-sales ratio of 24, but this quality business is worth the price and is a buy today. As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. Banks and financial organisations issue their analysis predicting how a stock will performance in the future. Regardless of the many ways investors use this item, whether looking at a stock's price change, an index's return, or a portfolio manager's performance, this time-frame is a common judging metric in the financial industry. We like very simple setups to guide us on when is the best time to sell our shares. For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. This is the year-to-date stock chart for DocuSign, and if you look over here on the right-hand side, $197.60 close of market today. See rankings and related performance below. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. A Software-Stock Assessment: 4 to Buy, 4 to Skip, and 2 to Sell Oct. 14, 2020 at 2:10 p.m. Conventional wisdom also has it that if the yield on the stock market (S&P 500 for example) is lower that the yield on the 10 Yr., then stocks would be considered overvalued. If a stock's EPS consensus estimate is $1.10 now vs. $1.00 the week before, that will be reflected as a 10% change. The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. Simple things usually work the best, Currently, DocuSign stock doesn't match any of these trading strategies, so our recommendation is not to buy now. Since then, DOCU stock has risen by 515.00%, with an average of 257.50% per year. On December 3, DocuSign, Inc. ($DOCU) reported adjusted EPS for that highly improved Market expectations. A rising stock on above average volume is typically a bullish sign whereas a declining stock on above average volume is typically bearish. But they all have their place in the Growth style. Quarterly EPS was $0.22 per share instead of $0.13. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Cash flow can be found on the cash flow statement. Value Style - Learn more about the Value Style. Net Margin is defined as net income divided by sales. The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). The Historical Cash Flow Growth is the longer-term (3-5 year annualized) growth rate of the cash flow change. Investors use this metric to determine how a company's stock price stacks up to its intrinsic value. Each of the company logos represented herein are trademarks of Verizon Media; Microsoft Corporation; Nasdaq, Inc.; Dow Jones & Company; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. Investors who bought DocuSign in the last year should continue holding the stock. are strong. That means these items are added back into the net income to produce this earnings number. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. If a stock's Q1 estimate revision decreases leading up to its earnings release, that's usually a negative sign, whereas an increase is typically a positive sign. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. Stocks: Overvalued or Cheap Heading Into 2021? Above 1 means it assets are greater than its liabilities. DocuSign went public in April 2018 and demand for the company's stock was red-hot right out of the gate. Visit www.zacksdata.com to get our data and content for your mobile app or website. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. Lillian Currens Deputy Editor Oct 10, 2019 at 11:40 AM DOCU; Last time this technical signal sounded, DocuSign … Enterprise Value (EV) is Market Capitalization + Debt - Cash. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. The 52 Week Price Change displays the percentage price change over the most recently completed 52 weeks (260 trading days). This shows the percentage of profit a company earns on its sales. The Company offers services to mortgage, non-profit, government, real estate, insurance, technology and healthcare industries. The (F1) EPS Estimate Monthly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last 4 weeks. The quarter's results are fantastic, and the 'accelerating growth' is quite impressive to say the least. The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. Can be useful to compare it to its common equity what the outlook is their! 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