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DocuSign Stock Appreciates 24% in a Year: What's Driving the Upside?

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DocuSign, Inc. (DOCU - Free Report) shares have gained 24.3% in the past year, outperforming the 4.5% rise of the industry.

Reasons Behind the Rally

DocuSign’s top line has been benefiting from continued customer demand for eSignature in a large addressable market. DOCU’s customer base has grown steadily, from 1.3 million in fiscal 2023 to 1.5 million in fiscal 2024 and 1.7 million in fiscal 2025. The company’s international revenues have increased consistently over the past three years, representing  25%, 26% and 28% of total revenues in fiscal 2023, 2024 and 2025, respectively.

DOCU started its international selling efforts in Canada, the UK and Australia, where it can leverage its core technologies due to similar approaches to e-signature in these countries and the United States. The company has experienced a rise in demand across multiple geographies and is directing its sales and marketing efforts to tap this potential. Taking the trend into consideration, we expect this growth momentum to continue in the coming years as well.

DocuSign’s business growth strategy includes the expansion of its product use case into adjacencies by managing and automating various agreement workflows across different business processes. A good amount of its R&D investment is devoted to this purpose, although it also focuses on improved and new solutions. It also aspires to enable a seamless and world-class self-service experience, which is a frictionless digital onboarding experience, allowing customers to engage the way they like and enabling them to purchase and manage in a low-touch manner. Docusign intends to continue investing in its APIs and other forms of support to further drive its value creation cycle between developers and itself.

Zacks Rank and Stocks to Consider

DocuSign currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks are Affirm (AFRM - Free Report) and Baidu (BIDU - Free Report) .

Affirm sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM has a long-term earnings growth expectation of 36.2%. It delivered a trailing four-quarter earnings surprise of 84.1% on average.

Baidu currently sports a Zacks Rank of 1, too.

BIDU has a long-term earnings growth expectation of 4.2%. It delivered a trailing four-quarter earnings surprise of 19.1% on average.


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