DocuSign is scheduled to report earnings after Thursday’s close. The stock hit a record high near $314.76/share in 2021 and is currently trading near $58/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $0.55/share on $641.80 million in revenue. Meanwhile, the so-called Whisper number is a gain of $0.60/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
DocuSign’s price to earnings (P/E) ratio of 28. The company’s earnings are expected to grow by a whopping +15% in 2024 compared to 2023 and by another +10% in 2025 compared to 2024. The company does not have any debt and is well positioned to continue to benefit as the global economy becomes more digital.
A Closer Look At The Technicals
Technically, the stock has been falling since 2021 when it traded near $314/share. The stock bottomed in November 2022 near $39/share. That was a very severe bear market because the stock fell 87% during that time! Since November, the stock has rallied to the high 50’s but is still well off its 2021 high. The bulls want to see the stock rally after earnings and the bears want to see it fall and hit new lows.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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