DocuSign is a NASDAQ listed company with a market capitalization of $16.84b, popularly known for its e-signature platform which provides a way to sign documents electronically on different devices, thus enabling individuals and businesses to digitize agreement processes.
On June 2nd DOCU shares dropped from the $88 level to a low of $82.74 while on June 3rd it bounced from $82.74 back to $87.55-$88.00 before consequently managing to trade sideways. DOCU was trading in a range for 7 consecutive days trading between support at $81 and overhead resistance at $88. In today’s US open, the asset gapped up breaking the latter and the round $90 level.
The breakout of the range and 1-month resistance at $90.00 bring the upper Keltner band into focus at $93.60. A failure to sustain this move should see the price breach or find immediate support at $86.75 and $86.40.
The DocuSign inc 2022 (Q1) quarterly earnings announcement is due on June 9th after the market close. According to tipranks.com Wall Street analysts are pencilling in a forecast of $581.1 million revenue growth (+23.9% year over year), which has been attributed to growth in subscription revenues and a strengthening customer base, with the consensus EPS forecast for the quarter at $-0.08. The reported EPS for the same quarter last year was $-0.03. The stock is also expected to have a high earnings quality ranking (EQR) for the 66th consecutive week. EQR is simply a way of finding out up to what extent current earnings predict future earnings. High EQR is usually expected to persist and Low EQR is not.
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Dennis Mwenga
Market Analyst – HF Educational Office – Kenya
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