At The Motley Fool, we're buy-and-hold investors, but before we can hold a stock, we have to pick the stock. So our analysts are always on the hunt for strong new investment ideas. And every week, some businesses stand out from the crowd, which is why every Motley Fool Money episode includes host Chris Hill asking his guests -- this time, senior analysts Ron Gross and Jason Moser -- which companies they have their eyes on, and why.
Their picks for this episode: steak slinger Texas Roadhouse (NASDAQ: TXRH) and e-signature specialist DocuSign (NASDAQ: DOCU).
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. A full transcript follows the video.
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This video was recorded on May 31, 2019.
Chris Hill: Let's get to the stocks on our radar. Our man behind the glass, Steve Broido, will hit you with a question. Ron Gross, what are you looking at?
Ron Gross: Texas Roadhouse, baby, TXRH. Five hundred ninety locations across the United States. Great culture. Sound financials. Thirty-seven consecutive quarters of same-store sales growth. Seventeen-point-nine percent average dividend increase. The yield is currently 2.2%. Increased labor costs have hit the stock. It's off 30% from its high. I think now's a good entry point.
Hill: Steve, question about Texas Roadhouse?
Steve Broido: I got to hear him speak at FoolFest. I think we had him last year or two years ago. Very compelling guy. If you've got a compelling CEO, is that a reason to buy the stock?
Gross: Well, that's certainly one factor I would put in place. Often, the stock price doesn't properly reflect a great management team, and it's one reason to own a stock.
Hill: Jason Moser, what are you looking at?
Jason Moser: DocuSign earnings hit next Thursday, DOCU. The company that offers e-signature solutions that enable businesses to digitally prepare, execute, and act on agreements. Serves everyone, from small sole proprietorships to large enterprises and everywhere in between. It's evolving beyond just being the digital signature and really trying to become that entire workflow in regard to documents, agreements, and management there. I've used it oftentimes in real estate transactions and whatnot. Very compelling business. I'm interested to see what they say.
Hill: Steve, question about DocuSign?
Broido: Where are they going next?
Moser: Well, I think they're going into more management, storage, and helping companies manage that full workflow of document management.
Hill: What do you want to add your watch list, Steve?
Broido: I think I'm going with Texas Roadhouse.
Chris Hill has no position in any of the stocks mentioned. Jason Moser owns shares of DocuSign. Ron Gross has no position in any of the stocks mentioned. Steve Broido has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends DocuSign and Texas Roadhouse. The Motley Fool has a disclosure policy.