Is the top-rated DocuSign share price finally catching searing sales and earnings growth? The tech company, whose software allows users to securely sign documents digitally and transmit them, has seen tremendous growth in the past year as Covid restrictions prevented people from showing up in person to sign documents. The question now is: Can DocuSign keep up the pace it has set for itself over the past year? On Monday, the relative strength rating (RS) for DocuSign (DOCU) hit a new percentile, rising to 83, down from 77 in the previous trading session.
The biggest market winners tend to have an RS rating above 80 when they initiate their biggest price moves. There are other indications that DocuSign could be among the long-term winners. For example, DocuSign stock hit a new all-time high at 275.84 on Friday, even as other Covid recovery stocks falter as the economy opens up.
DocuSign Stock Tops in other areas
Among other key ratings, the DocuSign stock scores an EPS rating of 99, on a scale of 1 to 99 with 99 vertices. The 99 rating reflects strong earnings growth in the short and long term.
Additionally, the DocuSign stock has a composite rating of 99. 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 enjoys an A- accumulation / distribution rating, on a scale of A + to E. The A- rating highlights strong purchases by institutional investors over the past 13 weeks.
In terms of sales and net income, the company has posted rising EPS growth over the past two quarters. Sales gains also increased over the same period. Specifically, in its most recent quarter, DocuSign reported 267% higher EPS compared to the same quarter a year ago, at 44 cents per share. Revenue increased 58% to $ 469.1 million.
DocuSign Stock ranks first 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.
Find out how IBD helps you make more money in stocks
The DocuSign stock, which appears on both the IBD 50 and Sector Leaders screens, is working on a consolidation with a buy point of 290.33. See if it can clear the breakout price in heavy trading. Keep in mind that this is a later stage consolidation, and these are riskier than earlier stage models.
When looking for the best stocks to buy and watch, one factor to watch out for is relative price strength.
IBD’s unique RS Rating measures market leadership by showing how a stock’s price over the past 52 weeks compares to other stocks in our database.
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