Yahoo Finance DocuSign (NASDAQ:DOCU) Shareholders Booked A 96% Gain In The Last Year
The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. To wit, the DocuSign, Inc. (NASDAQ:DOCU) share price is 96% higher than it was a year ago, much better than the market return of around 36% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! DocuSign hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for DocuSign
DocuSign wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year DocuSign saw its revenue grow by 38%. That's a fairly respectable growth rate. While the share price performed well, gaining 96% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
DocuSign is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling DocuSign stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's nice to see that DocuSign shareholders have gained 96% over the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 17%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). Before spending more time on DocuSign it might be wise to click here to see if insiders have been buying or selling shares.
But note: DocuSign may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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