Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is DocuSign (DOCU) one of those stocks right now? By taking a look at the stock’s year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
DocuSign is one of 194 individual stocks in the Business Services sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DOCU is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DOCU’s full-year earnings has moved 18.23% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.
Based on the most recent data, DOCU has returned 167.83% so far this year. In comparison, Business Services companies have returned an average of 1.26%. This means that DocuSign is outperforming the sector as a whole this year.
Looking more specifically, DOCU belongs to the Technology Services industry, a group that includes 61 individual stocks and currently sits at #151 in the Zacks Industry Rank. Stocks in this group have gained about 28.88% so far this year, so DOCU is performing better this group in terms of year-to-date returns.
Investors in the Business Services sector will want to keep a close eye on DOCU as it attempts to continue its solid performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.