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Reasons to Hold DocuSign (DOCU) Stock in Your Portfolio Now
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DocuSign, Inc. (DOCU - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get the true sense of the quality and sustainability of its growth.
The company’s earnings and revenues for fiscal 2024 are expected to improve 29.1% and 8.6%, respectively, year over year.
Factors That Augur Well
DocuSign remains focused on product innovation and expansion to ensure the addition of Agreement Cloud customers and the widening of its existing customer base. Currently, DocuSign products and solutions are used by more than 1.4 million customers and a billion users in more than 180 countries.
The company’s top line is significantly benefiting from continued customer demand for eSignature. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world. The company’s revenues increased 10.5% year over year in the second quarter of fiscal 2024.
DocuSign has deepened its relationship with partners such as Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
For instance, the company has expanded its global strategic partnership with Salesforce. The two companies jointly develop solutions for the automation of the contract process and expansion of collaboration among organizations that use Salesforce’s Slack. DocuSign made an eSignature integration with Microsoft Teams last year and is currently an official electronic signature provider in Microsoft Teams’ Approvals app.
Headwinds
DocuSign is seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses increased 21.8% year over year in fiscal 2023.
The company has never declared and neither has any plan to pay cash dividends on its common stock currently. So, the only way to achieve a return on investments in the company’s stock is share price appreciation, which is not guaranteed.
DocuSign currently carries a Zacks Rank #3 (Hold).
The company beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Reasons to Hold DocuSign (DOCU) Stock in Your Portfolio Now
DocuSign, Inc. (DOCU - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get the true sense of the quality and sustainability of its growth.
The company’s earnings and revenues for fiscal 2024 are expected to improve 29.1% and 8.6%, respectively, year over year.
Factors That Augur Well
DocuSign remains focused on product innovation and expansion to ensure the addition of Agreement Cloud customers and the widening of its existing customer base. Currently, DocuSign products and solutions are used by more than 1.4 million customers and a billion users in more than 180 countries.
The company’s top line is significantly benefiting from continued customer demand for eSignature. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world. The company’s revenues increased 10.5% year over year in the second quarter of fiscal 2024.
DocuSign Revenue (TTM)
DocuSign revenue-ttm | DocuSign Quote
DocuSign has deepened its relationship with partners such as Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
For instance, the company has expanded its global strategic partnership with Salesforce. The two companies jointly develop solutions for the automation of the contract process and expansion of collaboration among organizations that use Salesforce’s Slack. DocuSign made an eSignature integration with Microsoft Teams last year and is currently an official electronic signature provider in Microsoft Teams’ Approvals app.
Headwinds
DocuSign is seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses increased 21.8% year over year in fiscal 2023.
The company has never declared and neither has any plan to pay cash dividends on its common stock currently. So, the only way to achieve a return on investments in the company’s stock is share price appreciation, which is not guaranteed.
DocuSign currently carries a Zacks Rank #3 (Hold).
A better-ranked stock from the Business Services sector worth consideration is Verisk Analytics (VRSK - Free Report) .
The company beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.