$DOCU Profit Soars: Trader Bot Generates +6.53% Returns
The "Swing Trader: High Volatility Stocks for Active Trading (TA&FA)" platform recently showcased its prowess, delivering a remarkable +6.53% gain while navigating the complexities of DOCU trading over the past week. As we delve into the technical indicators and earnings report of DOCU, a leading player in the Packaged Software Industry, we aim to uncover the insights guiding these AI-driven trading decisions.
Aroon Indicator Points to Bullish Potential
The Aroon Indicator for DOCU has set the stage for potential bullish movements, triggering a bullish signal on December 27, 2023. Tickeron's A.I.dvisor indicates a positive scenario with the AroonUp green line surpassing 70, while the AroonDown red line remains below 30. This configuration historically signifies a bullish setup. Analyzing 256 instances with a similar Aroon Indicator pattern, A.I.dvisor found that in 233 cases, the stock experienced upward movements in the subsequent days, implying a robust 90% probability of a positive trend.
Earnings Report Exceeds Expectations
Examining DOCU's recent earnings report from December 07, 2023, reveals a significant beat on estimates. The earnings per share stood at an impressive 79 cents, surpassing the estimated 62 cents. With 1.52 million shares outstanding, the current market capitalization rests at 8.61 billion, showcasing the company's financial strength.
Market Cap Overview and Industry Trends
Comparing DOCU's market capitalization with the Packaged Software Industry averages provides valuable context. The industry's average market capitalization is 9.35 billion, with a broad range from 291 million to a staggering 2.84 trillion. Microsoft (MSFT) holds the highest valuation at 2.84 trillion, while the lowest valued company is BLGI at 291 million.
Price Movements and Notable News
Analyzing the price movements within the Packaged Software Industry reveals interesting trends. While the average weekly price growth remains at 0%, the monthly and quarterly averages tell a more nuanced story. The average monthly price growth is 2%, and the average quarterly price growth is -7%. Notably, IDXAD experienced the highest price growth at an impressive 367%, while KLDI faced the most significant fall at -81%.
Volume Trends in Packaged Software Industry
Volume dynamics play a crucial role in understanding market sentiment. The average weekly volume growth across all stocks in the Packaged Software Industry is 6%, with monthly volume growth at -17% and quarterly volume growth at 11%. These figures shed light on the ebb and flow of investor interest and participation in the industry.
The combination of AI-driven trading strategies, positive technical indicators, and robust earnings positions DOCU favorably in the competitive landscape of the Packaged Software Industry.
Momentum Indicator for DOCU turns positive, indicating new upward trend
DOCU saw its Momentum Indicator move above the 0 level on September 23, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 77 similar instances where the indicator turned positive. In of the 77 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 50-day moving average for DOCU moved above the 200-day moving average on October 02, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOCU advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 262 cases where DOCU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DOCU moved out of overbought territory on October 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for DOCU turned negative on October 24, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DOCU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DOCU broke above its upper Bollinger Band on October 09, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DOCU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.593) is normal, around the industry mean (30.698). P/E Ratio (161.750) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (0.522) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (4.405) is also within normal values, averaging (55.771).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DOCU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of cloud-based electronic signature solutions
Industry PackagedSoftware