Yahoo Finance Here's Why Investors Should Buy DocuSign (DOCU) Stock Right Now
DocuSign, Inc. DOCU is a global provider of cloud-based software that has performed extremely well over the six-month period and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes DOCU an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past six months. Shares of DocuSign have returned 43.2% compared with the 26.9% growth of the industry it belongs to and the 16.6% decline of the Zacks S&P 500 composite.
DocuSign Price
DocuSign price | DocuSign Quote
Solid Zacks Rank: DOCU currently sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities for investors.
Northward Estimate Revisions: An estimate for fiscal 2025 has moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2025 earnings has moved up 1.6% in the past 60 days.
Positive Earnings Surprise History: DOCU has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 23.7% on average.
Strong Growth Prospects: The Zacks Consensus Estimate for DOCU’s fiscal 2025 earnings is pegged at $3.24, which suggests 8.7% year-over-year growth. Moreover, earnings are expected to register an 8.2% increase in fiscal 2026.
Growth Factor: DocuSign actively pursues growth through diverse strategies: acquiring eSignature customers, expanding existing use cases, enhancing offerings and promoting Agreement Cloud products. The company focuses on international expansion and invests in sales, marketing and expertise. We expect revenues to grow 5.7%, 5.2% and 7.8% in fiscals 2025, 2026 and 2027.
DOCU's top line is bolstered by increasing demand for eSignatures, with ample global expansion opportunities. Concurrently, the company expanded its global strategic partnership with Salesforce, prioritizing contract automation and collaboration through Slack. Furthermore, it integrated eSignature capabilities into Microsoft Teams, solidifying its position as the official provider within the Approvals app.
Other Stocks to Consider
A couple of better-ranked stocks in the broader Zacks Business Services sector are Aptiv APTV and Booz Allen Hamilton BAH.
Aptivcurrently carries a Zacks Rank #2. APTV has a long-term earnings growth expectation of 16.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.18%. Shares of APTV have surged 17% in the past month.
Booz Allen Hamilton carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 12.6%.
The company delivered an earnings surprise of 12.7%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of BAH have risen 7.7% in the past month.
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Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Aptiv PLC (APTV) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
