Back to top

Image: Bigstock

Here's Why DocuSign (DOCU) Stock Is a Great Pick Right Now

Read MoreHide Full Article

DocuSign (DOCU - Free Report) is an eSignature solution provider that has performed well over the past three months and has the potential to sustain its momentum in the near term. The stock has gained 6% in the said time frame.

What Makes DOCU an Attractive Pick?

Solid Rank: DOCUcurrently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

DocuSign Price and EPS Surprise

 

DocuSign Price and EPS Surprise

DocuSign price-eps-surprise | DocuSign Quote

Positive Earnings Surprise History: DOCU has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 24.7%, on average.

Strong Prospects: The Zacks Consensus Estimate for DOCU’s fiscal 2024 earnings is pegged at $2.9, indicating 41.4% year-over-year growth. The company has a long-term expected earnings growth rate of 15.2%.

Growth Factors: DOCU focuses on accelerating product innovation, improving omnichannel go-to market, and financial and operational efficiency. Its key focus area is on improving the capability of eSignature product and the expansion of value proposition into agreement management. The omnichannel go-to market front involves international expansion into untapped markets and strengthening the partner ecosystem.

On the financial and operational efficiency front, DOCU has delivered a record operating margin and hefty free cash flow. This will, thus, enable the company to invest for long-term growth.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Veralto Corporation (VLTO - Free Report) and Jamf Holding Corp. (JAMF - Free Report) .

Veralto carries a Zacks Rank #2 at present. The consensus estimate for the company’s 2024 earnings has increased 2.8% in the past 60 days.

VLTO’s earnings are expected to rise 2.1% year over year in 2024. It has a long-term earnings growth expectation of 5.6%.

Jamf currently carries a Zacks Rank #2. The consensus mark for the company’s 2024 earnings has increased 41.7% in the past 60 days.

JAMF’s earnings are expected to grow 64.5% year over year in 2024. It has a long-term earnings growth expectation of 22.5%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Docusign Inc. (DOCU) - free report >>

Jamf Holding Corp. (JAMF) - free report >>

Veralto Corporation (VLTO) - free report >>

Published in