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Here's Why Investors Should Hold DocuSign (DOCU) Stock Now
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DocuSign, Inc. (DOCU - Free Report) is benefiting from continued customer demand for eSignature and solid liquidity.
DOCU’s revenues are anticipated to grow 18.4% and 8% in fiscal 2023 and fiscal 2024, respectively.
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) was 1.02 at the end of third-quarter fiscal 2023, higher than the current ratio of 0.96 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 60% in the past year compared with 46.5% fall of the industry it belongs to.
Investors interested in the broader Zacks Business Services sector can also consider stocks like Booz Allen Hamilton Holding Corporation (BAH - Free Report) and The Interpublic Group of Companies, Inc. (IPG - 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.
Interpublic Group is currently Zacks #2 Ranked. IPG has a long-term earnings growth expectation of 3.7%.
IPG delivered a trailing four-quarter earnings surprise of 8.9%, on average.
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Here's Why Investors Should Hold DocuSign (DOCU) Stock Now
DocuSign, Inc. (DOCU - Free Report) is benefiting from continued customer demand for eSignature and solid liquidity.
DOCU’s revenues are anticipated to grow 18.4% and 8% in fiscal 2023 and fiscal 2024, respectively.
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) was 1.02 at the end of third-quarter fiscal 2023, higher than the current ratio of 0.96 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 60% in the past year compared with 46.5% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank and Other Stocks to Consider
DocuSign currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Business Services sector can also consider stocks like Booz Allen Hamilton Holding Corporation (BAH - Free Report) and The Interpublic Group of Companies, Inc. (IPG - 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.
Interpublic Group is currently Zacks #2 Ranked. IPG has a long-term earnings growth expectation of 3.7%.
IPG delivered a trailing four-quarter earnings surprise of 8.9%, on average.