Shop Stock: DocuSign Stock Strength Rating Catching Up To Blazing Sales Growth
Is top-rated DocuSign’s stock price finally catching up with its torrid sales and profit growth? The tech company whose software enables users to securely sign documents digitally and transmit them, saw huge growth over the past year as Covid restrictions kept people from showing up in person to sign documents. The question now is: Can DocuSign keep up the pace it set over the past year? On Monday, the Relative Strength (RS) Rating for DocuSign (DOCU) climbed to a new percentile, rising to 83, up from 77 the prior trading session.
The market’s biggest winners tend to have an RS Rating of over 80 as they launch their biggest price moves. There are other indications that DocuSign may be among long-term winners. For example, DocuSign stock hit a fresh all-time high at 275.84 on Friday, even though other Covid recovery stocks are faltering as the economy opens up.
DocuSign Stock Tops In Other Areas
Among other key ratings, DocuSign stock earns a 99 EPS Rating, on a 1-99 scale with 99 tops. The 99 rating reflects strong near-term and long-term earnings growth.
Additionally, DocuSign stock has a 99 Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics. The best growth stocks have a Composite Rating of 90 or better.
The San Francisco-based company also boasts an A- Accumulation/Distribution Rating, on an A+ to E scale. The A- rating pinpoints strong buying by institutional investors over the past 13 weeks.
In terms of top and bottom line numbers, the company has posted rising EPS growth over the last two quarters. Sales gains have also increased during the same period. Specifically, in its most recent quarter DocuSign reported 267% higher EPS vs. the same quarter a year ago, to 44 cents a share. Revenue grew 58% to $469.1 million.
DocuSign stock earns the No. 1 rank among its peers in the Computer Software-Enterprise industry group. Shopify (SHOP) and Concentrix (CNXC) are also among the top 5 companies in the group.
See How IBD Helps You Make More Money In Stocks
DocuSign stock, which is on both the IBD 50 and Sector Leaders screens, is working on a consolidation with a 290.33 buy point. See if it can clear the breakout price in heavy trading. Keep in mind that it’s a later-stage consolidation, and those are riskier than earlier-stage patterns.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s unique RS Rating measures market leadership by showing how a stock’s price action over the last 52 weeks compares to that of the other stocks in our database.
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