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Reasons to Hold DocuSign (DOCU) Stock in Your Portfolio
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DocuSign, Inc. (DOCU - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s earnings for fiscal 2022 and 2023 are expected to improve 118.9% and 10.6% respectively, year over year.
Factors That Bode Well
DocuSign is increasing investments in global sales capacity, training and field enablement to expand its pipeline of new businesses. The company remains focused on product innovation and expansion to ensure the addition of Agreement Cloud customers and expansion of the existing customer base. Notably, the company added 59,000 new customers in the third quarter of fiscal 2022, bringing its total worldwide customer count to 1.11 million, a rise of 35% year over year.
DocuSign’s top line is significantly benefiting from continued customer demand for eSignature. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world. The company’s revenues increased 42.5% year over year to $545.3 millionin the third quarter of fiscal 2022.
DocuSign is continuing to deepen its relationships with partners such as salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
For instance, the company recently expanded its global strategic partnership with salesforce. DocuSign and salesforce now jointly develop solutions for automation of the contract process and expansion of collaboration among organizations that use salesforce’s Slack.
DocuSign made an eSignature integration with Microsoft Teams earlier this year and is currently an official electronic signature provider in the Microsoft Teams’ Approvals app.
Headwinds
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 36.6% year over year in fiscal 2021.
DocuSign has never declared and currently does not have any plan to pay cash dividends on its common stock. So, the only way to achieve return on investment on the company’s stock is share price appreciation, which is not guaranteed.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold). The company’s shares have declined 32.5% over the past year, compared with 34% decline of the industry it belongs to.
Image: Shutterstock
Reasons to Hold DocuSign (DOCU) Stock in Your Portfolio
DocuSign, Inc. (DOCU - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s earnings for fiscal 2022 and 2023 are expected to improve 118.9% and 10.6% respectively, year over year.
Factors That Bode Well
DocuSign is increasing investments in global sales capacity, training and field enablement to expand its pipeline of new businesses. The company remains focused on product innovation and expansion to ensure the addition of Agreement Cloud customers and expansion of the existing customer base. Notably, the company added 59,000 new customers in the third quarter of fiscal 2022, bringing its total worldwide customer count to 1.11 million, a rise of 35% year over year.
DocuSign’s top line is significantly benefiting from continued customer demand for eSignature. Despite this rising demand, the market for eSignature remains largely untapped, and this keeps DocuSign in a position to expand the same across businesses around the world. The company’s revenues increased 42.5% year over year to $545.3 millionin the third quarter of fiscal 2022.
DocuSign Revenue (TTM)
DocuSign revenue-ttm | DocuSign Quote
DocuSign is continuing to deepen its relationships with partners such as salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) .
For instance, the company recently expanded its global strategic partnership with salesforce. DocuSign and salesforce now jointly develop solutions for automation of the contract process and expansion of collaboration among organizations that use salesforce’s Slack.
DocuSign made an eSignature integration with Microsoft Teams earlier this year and is currently an official electronic signature provider in the Microsoft Teams’ Approvals app.
Headwinds
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 36.6% year over year in fiscal 2021.
DocuSign has never declared and currently does not have any plan to pay cash dividends on its common stock. So, the only way to achieve return on investment on the company’s stock is share price appreciation, which is not guaranteed.
Zacks Rank and Stocks to Consider
DocuSign currently carries a Zacks Rank #3 (Hold). The company’s shares have declined 32.5% over the past year, compared with 34% decline of the industry it belongs to.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
A better-ranked stock in the broader Zacks Business Services sector is Avis Budget (CAR - Free Report) .
Avis Budget has an expected earnings growth rate of around 453.5% for 2021. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 459.5% in the past year. CAR has a long-term expected earnings growth rate of 18.8%. CAR sports a Zacks Rank #1.