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DocuSign (DOCU) and Sonos (SONO) are Aggressive Growth Stocks

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Brian Bolan is looking at two more names in his aggressive growth Zacks Rank Buy video. This week is focused on the growth and value divergence. Brian likes to look at stocks that have a strong Zacks Style Score for Growth and weak Zacks Style Score for Value. Value investors are growth investors are inherently looking for different things, so when the style scores are polar opposite Brian believes that he is on the right path.

First up is DocuSign (DOCU - Free Report) a stock that is a Zacks Rank #1 (Strong Buy) and talks about how the company benefitted from the pandemic and the stock rallied to $300 a share at its peak. The stock was then “smashed” in what Brian calls the tech recession of 2022 and has been hovering around $50 now for a while.

Brian notes that there is only a little movement in the estimates but it is enough to give us the top Zacks Rank. DocuSign is still showing some good growth here and Brian walks us through his thoughts on the valuation.

The next stock that Brian looks at is Sonos (SONO - Free Report) which is also showing a strong growth divergence. The stock responded well to the pandemic and Brian talked about how his personal experience with adding extra speakers and sub woofers has helped his viewing pleasure.

SONO was also selected as Brian believes that this could be one of the many “holiday” stocks that targeted as investors try to predict which stocks will see a surge of year end sales. Brian notes that while he likes his present set up, a new version could be coming soon and that hardware upgrades could be a material driver going forward.


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