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Here's Why DocuSign (DOCU) is an Attractive Pick Right Now
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DocuSign (DOCU - Free Report) has had an impressive run over the past six months, gaining 11.2% and outperforming its industry’s 9.6% growth.
Reasons Why DOCU is an Attractive Pick Now
Solid Rank and VGM Score: DOCU currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, combined with a VGM Score of A or B, offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Positive Earnings Surprise: DocuSign has had an impressive earnings surprise history in the past four quarters, beating the Zacks Consensus Estimate in each of the four quarters, with an average surprise of 24.7%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fiscal 2024, the Zacks Consensus Estimate for earnings is pegged at $2.87 per share, up 41.4% from the year-ago figure. The estimates have been revised upward by 9.5% in the past 60 days. The favorable estimate revision reflects the confidence of brokers in the stock.
Bullish Industry Rank: The industry, to which DocuSign belongs, currently has a Zacks Industry Rank of 62 (of 252 groups). Such a solid rank places the industry in the top 25% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: DocuSign is gaining from the continued demand for its anchor product, eSignature. A huge market for eSignature remains unexploited, which increases the scope of expansion of the product. The company currently has 1.44 billion customers, which we expect to reach 1.56 billion by 2024, courtesy of the stable demand situation of its products.
DocuSign aims to tap the global markets through acquisitions and partnerships. It has strengthened ties with key partners like Salesforce and Microsoft. The global strategic alliance with Salesforce now focuses on automating contracts and enhancing collaboration through Salesforce's Slack. Additionally, it seamlessly integrated eSignatures into Microsoft Teams, officially serving in the Teams' Approvals app.
DocuSign's worldwide success is evident, as international earnings constituted about 25%, 23% and 20% of total revenues for the fiscal years concluding on Jan 31, 2023, 2022 and 2021. The company’s initial market was the English-speaking common law countries such as Canada, the U.K. and Australia, leveraging shared e-signature practices with the US. Later, significant investments were made to broaden product offerings in selected civil law nations.
Other Stocks to Consider
The following top-ranked stocks from the broader Business Services sector are also worth consideration:
Gartner (IT - Free Report) : The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure, while earnings are expected to decline 1.9%. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 34.4%.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR currently carries a Zacks Rank of 2.
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Here's Why DocuSign (DOCU) is an Attractive Pick Right Now
DocuSign (DOCU - Free Report) has had an impressive run over the past six months, gaining 11.2% and outperforming its industry’s 9.6% growth.
Reasons Why DOCU is an Attractive Pick Now
Solid Rank and VGM Score: DOCU currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, combined with a VGM Score of A or B, offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
DocuSign Price
DocuSign price | DocuSign Quote
Positive Earnings Surprise: DocuSign has had an impressive earnings surprise history in the past four quarters, beating the Zacks Consensus Estimate in each of the four quarters, with an average surprise of 24.7%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fiscal 2024, the Zacks Consensus Estimate for earnings is pegged at $2.87 per share, up 41.4% from the year-ago figure. The estimates have been revised upward by 9.5% in the past 60 days. The favorable estimate revision reflects the confidence of brokers in the stock.
Bullish Industry Rank: The industry, to which DocuSign belongs, currently has a Zacks Industry Rank of 62 (of 252 groups). Such a solid rank places the industry in the top 25% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors: DocuSign is gaining from the continued demand for its anchor product, eSignature. A huge market for eSignature remains unexploited, which increases the scope of expansion of the product. The company currently has 1.44 billion customers, which we expect to reach 1.56 billion by 2024, courtesy of the stable demand situation of its products.
DocuSign aims to tap the global markets through acquisitions and partnerships. It has strengthened ties with key partners like Salesforce and Microsoft. The global strategic alliance with Salesforce now focuses on automating contracts and enhancing collaboration through Salesforce's Slack. Additionally, it seamlessly integrated eSignatures into Microsoft Teams, officially serving in the Teams' Approvals app.
DocuSign's worldwide success is evident, as international earnings constituted about 25%, 23% and 20% of total revenues for the fiscal years concluding on Jan 31, 2023, 2022 and 2021. The company’s initial market was the English-speaking common law countries such as Canada, the U.K. and Australia, leveraging shared e-signature practices with the US. Later, significant investments were made to broaden product offerings in selected civil law nations.
Other Stocks to Consider
The following top-ranked stocks from the broader Business Services sector are also worth consideration:
Gartner (IT - Free Report) : The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure, while earnings are expected to decline 1.9%. The company beat the consensus estimate in each of the trailing four quarters, with an average surprise of 34.4%.
IT carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate for Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure, while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR currently carries a Zacks Rank of 2.