Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Booz Allen Hamilton Holding Corporation (BAH) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Booz Allen Hamilton Holding Corporation (BAH) - free report >>
Image: Shutterstock
Here's Why Investors Should Hold DocuSign (DOCU) Stock Now
DocuSign, Inc. (DOCU - Free Report) is benefiting from continued customer demand for eSignature as well as solid liquidity.
DOCU’s revenues are anticipated to grow 17.5% in fiscal 2023.
Factors That Augur Well
eSignature, DocuSign’s anchor product, enables virtual but secure signing and sending of agreements on a variety of devices, from anywhere in the world. The company’s top line is significantly benefiting from continued customer demand for eSignature. Despite rising demand, the market for eSignature remains largely untapped. This keeps DocuSign in a position to expand eSignature across businesses around the world.
DocuSign’s current ratio (a measure of liquidity) stood at 1.02 at the end of second-quarter fiscal 2023, higher than the current ratio of 0.98 recorded at the end of the prior year quarter. The gradually increasing current ratio bodes well for DocuSign as it implies that the risk of default is less.
Some Risks
DocuSign is seeing an increase in expenses as it continues to invest in sales, marketing and technical expertise. Total operating expenses of $1.3 billion increased 34.8% year over year in fiscal 2022. Hence, the company's bottom line is likely to remain under pressure going forward.
Shares of DOCU have plunged 72.8% in the past year, compared with 60.3% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.