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If You Had Bought DocuSign (NASDAQ:DOCU) Stock A Year Ago, You Could Pocket A 388% Gain Today

Simply Wall St

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, the DocuSign, Inc. (NASDAQ:DOCU) share price is up a whopping 388% in the last year, a handsome return in a single year. It's also good to see the share price up 94% over the last quarter. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for DocuSign

Given that DocuSign didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, DocuSign's revenue grew by 39%. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 388% in the last year. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at DocuSign.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

DocuSign is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for DocuSign in this interactive graph of future profit estimates.

A Different Perspective

DocuSign boasts a total shareholder return of 388% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 94% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand DocuSign better, we need to consider many other factors. For example, we've discovered 4 warning signs for DocuSign that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.