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DocuSign (DOCU) Gains 16.6% in the Past 3 Months: Here's How

DocuSign, Inc. DOCU shares have had an impressive run over the past three months. The stock has gained 16.6% compared with 11.4% rise of the industry it belongs to.

Reasons for the Upside

DocuSign’s current ratio (a measure of liquidity) was at 1.02 at the end of third-quarter fiscal 2023, higher than 0.96 recorded at the end of the prior year quarter. The gradually increasing current ratio bodes well for DocuSign as that implies that the risk of default is less.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Investment Research Image Source: Zacks Investment Research

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 this rising demand, the market for eSignature remains largely untapped which keeps DocuSign in a position to expand eSignature across businesses around the world.

Strong Revenue Growth

Driven by the above tailwinds, the Zacks Consensus Estimate for fiscal 2024 earnings indicates an increase of 19.4% year over year to $2.15 billion in the past 60 days.

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 may also consider stocks like Paychex, Inc. PAYX and  The Interpublic Group of Companies, Inc. IPG.

Paychex carries a Zacks Rank #2 (Buy) at present. PAYX has a long-term earnings growth expectation of 7.5%.

Paychex delivered a trailing four-quarter earnings surprise of 5.9%, on average.

Interpublic is currently Zacks #2 Ranked. IPG has a long-term earnings growth expectation of 3.70%.

IPG delivered a trailing four-quarter earnings surprise of 8.9%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Paychex, Inc. (PAYX) : Free Stock Analysis Report

Interpublic Group of Companies, Inc. The (IPG) : Free Stock Analysis Report

DocuSign (DOCU) : Free Stock Analysis Report

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Zacks Investment Research