It is essentially the inverse of the P/E ratio. This is a medium-term price change metric (like the 4 week price change). Real time prices by BATS. The 4 Week Price Change displays the percentage price change for the most recently completed 4 weeks (20 trading days). It's then divided by the number of shares outstanding to determine how much cash is generated per share. There are currently 4 hold ratings and 15 buy ratings for the stock, resulting in a consensus recommendation of "Buy." And, of course, the 4 week change helps put the 1 week change into context. The quarter's results are fantastic, and the 'accelerating growth' is quite impressive to say the least. The Momentum Scorecard table also displays the values for its respective Industry along with the values and Momentum Score of its three closest peers. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks' proprietary data indicates that DocuSign Inc. is currently rated as a Zacks Rank 3 and we are looking for an inline return from the DOCU shares relative to the market in the next few months. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. The (F1) EPS Estimate Quarterly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last 12 weeks. After the P/E ratio, it's one of the most common valuation metrics. There’s no denying that DocuSign stock is … Shares are soaring to new highs -- is it too late for investors to get on board? Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). 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. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. Everything looks good about DocuSign -- except for the valuation. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank. A ratio under 40% is generally considered to be good.But note; this ratio can vary widely from industry to industry. This item is updated at 9 pm EST each day. DocuSign replaces printing, faxing, scanning and overnighting documents with the easiest, … Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.41% per year. 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. 60K Americans could die in next 3 weeks. Seeing how a company makes use of its equity, and the return generated on it, is an important measure to look at. It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). Like the P/E ratio, a lower number is considered better. It's an integral part of the Zacks Rank and a critical part in effective stock evaluation. A strong weekly advance (especially when accompanied by increased volume) is a sought after metric for putting potential momentum stocks onto one's radar. Volume is a useful item in many ways. Seeing a company's projected sales growth instantly tells you what the outlook is for their products and services. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. However, in the wake of its second-quarter earnings announcement, the stock was up 22.92% to $56.85 in the premarket trading session today. 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. In general, the lower the ratio is the better. The analyzed items go beyond simple trend analysis. Zacks Style Scores Education - Learn more about the Zacks Style Scores. Ideally, an investor would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks. The 4 week price change is a good reference point for the individual stock and how it's performed in relation to its peers. The Zacks database contains over 10,000 stocks. 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. 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. Zacks Rank Education -- Learn more about the Zacks Rank 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. setups and buypoints. 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. So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first. A ratio of 2 means its assets are twice that of its liabilities. The 52 Week Price Change displays the percentage price change over the most recently completed 52 weeks (260 trading days). The monthly returns are then compounded to arrive at the annual return. DocuSign received 8 ratings in the last 30 days: 6 bullish, 0 bearish and 2 neutral. 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). 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. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms and Conditions of Service. When evaluating a stock, it can be useful to compare it to its industry as a point of reference. With companies all over the globe rethinking how to … Banks and financial organisations issue their analysis predicting how a stock will performance in the future. 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. For one, part of trading is being able to get in and out of a stock easily. The Growth Scorecard table also displays the values for its respective Industry along with the values and Growth Score of its three closest peers. This shows the percentage of profit a company earns on its sales. Evan Niu, CFA (TMFNewCow) Jul 8, 2020 at … It is used to help gauge a company's financial health. DocuSign, Inc. is a public company trading in the US stock market with the DOCU symbol. Cash flow can be found on the cash flow statement. Due in part to its meteoric rise since early last year, DocuSign's stock is by no means cheap. A sector 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. A higher number is better than a lower number. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. DocuSign stock rose 2.35% to close at $233.70 on the stock market today, after 4 consecutive sessions in positive. The price is trading near to the upper Bollinger band, signaling some level of overbought in recent sessions. So the PEG ratio tells you what you're paying for each unit of earnings growth. Shares of DocuSign (NASDAQ:DOCU) have popped today, up by 11.5% as of 1:50 p.m. EDT, after getting a thumbs-up from Wall Street. 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. The EV/EBITDA ratio is a valuation multiple and is often used in addition, or as an alternative, to the P/E ratio. The income number is listed on a company's Income Statement. 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. DocuSign (DOCU) closed at $102.79 in the latest trading session, marking a -1.11% move from the prior day. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. Stocks: Overvalued or Cheap Heading Into 2021? A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. Projected EPS Growth looks at the estimated growth rate for one year. So be sure to compare it to its group when comparing stocks in different industries. This is not a bearish indicator, as price can trade in these levels for many days and weeks. Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). It's packed with all of the company's key stats and salient decision making information. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. DocuSign stock is supported by an incredibly relevant business. Docusign Inc stock has gained 239.05% over the last 12 months, and the average rating from Wall Street analysts is a Strong Buy.InvestorsObserver’s proprietary ranking system, gives DOCU stock a score of 69 out of a possible 100.. That rank is influenced by a short-term technical score of 95. ROE values, like other values, can vary significantly from one industry to another. Some investors seek out stocks with the best percentage price change over the last 52 weeks, expecting that momentum to continue. In short, this is how much a company is worth. Net Margin is defined as net income divided by sales. As the name suggests, it's calculated as sales divided by assets. DocuSign ($DOCU) is posting Q4 earnings report next March. A P/B of 2 means it's selling at 2 times its book value. There are 17 Sectors, 60 different M Industries, and 265 X Industries. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. ET by Barron's DocuSign stock surges after Morgan Stanley upgrade Zacks Ranks stocks can, and often do, change throughout the month. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers. Note; companies will typically sell for more than their book value in much the same way that a company will sell at a multiple of its earnings. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Like most ratios, this number will vary from industry to industry. If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. 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. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. Others will look for a pullback on the week as a good entry point, assuming the longer-term price changes (4 week, 12 weeks, etc.) A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. Should I sell DocuSign stock? The following table shows the price forecasts published by analysts in the last 30 days. How good is it? Zacks Premium - The way to access to the Zacks Rank. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. A P/S ratio of 2 means you're paying $2 for every $1 of sales the company makes. If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision. The respective items are ranked and graded into five groups: A, B, C, D and F. An A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. A higher number means the more debt a company has compared to its capital structure. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A. 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. The scores are based on the trading styles of Value, Growth, and Momentum. Growth Style - Learn more about the Growth Style. In this case, it's the cash flow growth that's being looked at. A D/E ratio of 1 means its debt is equivalent to its common equity. DocuSign, Inc. provides cloud based software in the United States and internationally. Value Style - Learn more about the Value Style. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. In addition, DocuSign Inc. has a VGM Score of B (this is a weighted average of the individual Style Scores which allow you to focus on the stocks that best fit your personal trading style). This is a medium-term price change metric. And that one big risk prevents DOCU stock from being a buy here. Learn more about Zacks Equity Research reports. It's typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. That does not mean that all companies with large growth rates will have a favorable Growth Score. Enterprise Value (EV) is Market Capitalization + Debt - Cash. But they all have their place in the Growth style. Why DocuSign Stock Gained Today DocuSign acquires Liveoak to accelerate its roadmap for online notary services. The Momentum Scorecard focuses on price and earnings momentum and indicates when the timing is right to enter a stock. The Price to Sales ratio or P/S is calculated as price divided by sales. A D/E ratio of 2 might be par for the course in one industry, while 0.50 would be considered normal for another. $233.60 Quarterly EPS was $0.22 per share instead of $0.13. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. Buy Calls on DocuSign Stock. This includes personalizing content and advertising. The company is focused on expanding its product portfolio and customer base. In general, a lower number or multiple is usually considered better that a higher one. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. We use cookies to understand how you use our site and to improve your experience. Debt to Capital (or D/C ratio) is the fraction of debt (including mortgages and long-term leases) to long-term capitalization. The values and growth prospects of DOCU, demonstrate its potential to outperform based on subjective opinions, or... 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