Why This 1 Growth Stock Could Be a Great Addition to Your Portfolio

Zacks
02-07

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

DocuSign (DOCU)

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.

DOCU is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of B and VGM Score of B. Earnings are expected to grow 18.5% year-over-year for the current fiscal year, with sales growth of 7.2%.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.01 to $3.53 per share. DOCU also boasts an average earnings surprise of 12.1%.

Looking at cash flow, DocuSign is expected to report cash flow growth of 86.5% this year; DOCU has generated cash flow growth of 28.3% over the past three to five years.

Investors should take the time to consider DOCU for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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Docusign Inc. (DOCU) : Free Stock Analysis Report

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