The Zacks Rank Explained: How to Find Strong Buy Business Services Stocks
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Building a successful investment portfolio takes skill and hard work, no matter if you're a growth, value, income, or momentum-focused investor.
Should You Buy #1 (Strong Buy)-Ranked DocuSign (DOCU) for Your Portfolio?
DocuSign was upgraded to the Zacks Rank #1 list on September 11, 2024. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.
Founded in 2003 and headquartered in San Francisco, Docusign is a global provider of cloud-based software. The company’s Docusign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process.
For fiscal 2025, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.22 to $3.45 per share. DOCU boasts an average earnings surprise of 18.3%.
Analysts are expecting earnings to grow 15.8% for the current fiscal year, with revenue forecasted to rise 6.5%.
Even more impressive, DOCU has gained in value over the past four weeks, up 20.5% compared to the S&P 500's gain of 2.7%.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, DocuSign could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.
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