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Top Stock Picks for Week of March 21, 2022

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AutoNation, Inc. (AN - Free Report) is the largest automotive retailer in the United States.AutoNation posted the seventh consecutive all-time record numbers in the fourth-quarter 2021. As of Dec 31, 2020, AutoNation owned and operated over 315 new vehicle franchises from 230 stores located in the United States.Diversified product mix, strong footprint, large dealer network and aggressive store expansion efforts are set to fuel the firm's profitability. Acquisition of Peacock Automotive Group and Priority 1 have buoyed AutoNation’s portfolio. Enhanced digital solutions have helped AutoNation to further boost profitability and market presence. With the launch of its digital platform AutoNation Express — which enables customers to buy and sell vehicles online — the company has stepped up its digitization game, which is driving its top-line growth. Increased focus on cost discipline is also aiding margins. Strong liquidity profile and investor friendly moves instill optimism. AutoNation posted the seventh consecutive all-time record numbers in the fourth-quarter 2021. Shares have gained over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2022 compared to none lower. Analysts are forecasting more upside for AN too. Thus, the stock warrants a bullish stance for the time being.

DocuSign (DOCU - Free Report) is a global provider of cloud-based software. DocuSign's top line is being significantly benefited from continued customer demand for eSignature, its anchor product. The acquisitions of Seal Software and Liveoak Technologies in 2020 are expected to add functionality to DocuSign Agreement Cloud and significantly expand the company’s eNotary offerings. The company remains focused on continuously acquiring eSignature customers, improving its offerings, and expanding internationally.DocuSign has a set of business growth strategies. The company remains focused on continuously acquiring eSignature customers, expanding eSignature use cases within existing customers, improving its offerings and popularizing other Agreement Cloud products to new and existing customers, and expanding internationally. Fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate while revenues beat the same. DocuSign's cash and cash equivalent balance at the end of the third-quarter fiscal 2022 was above the total debt level, underscoring that the company has enough cash to meet its debt burden. A strong cash position allows the company to pursue opportunities that exhibit true potential.


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