Daily Stock Opinions and Ratings

Wealthica The ultimate 360° Tracker Your financial life in one place, automatically

Opinions

Jim Cramer - Mad MoneyDocusignDOCUBUYJul 12, 2023

Has a new CEO since last year and he's aggressively cut costs. Last month, they reported one of their best quarters in years, but shares didn't get any traction.

Jim Cramer - Mad Money

Unknown

Unlock Rating

$51.80

Stock price when the opinion was issued

$44.20

As of Jun 15, 2026. Market Open.

Technology

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

BUY ON WEAKNESS

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We have long thought someone should take over DOCU. While there is competition and not really a 'moat' anymore, it still has a solid 'brand'. Growth is slowing, but cash flow is solid and growing. It is 21X earnings right now, down 15% for the year but of course well off its pandemic highs. Its low is just below $50. We would likely get more interested in the $65 range.
Unlock Premium - Try 5i Free

SELL

Their last quarter was good but nobody liked it. Innovations were good. That said, go with the flow and sell.

BUY

Decent earnings lie ahead. Has a 5.5% free cash flow yield.

STRONG BUY

Their Q2 earnings beat. A pandemic darling that then crashed. But now it trades at a fair valuation and strong free cash flow. She bought it last September is up 35%. Trades at 16x PE and has a 8% free cash flow yield. Great managers who underpromise, so they will beat their quarter. Has real secular growth.

HOLD

It has maxed out to a large degree on the growth side. It is still dominant in the space and could be an acquisition target.

DON'T BUY

Dominates this business, but ADBE has entered the space. Stock's gone sideways. Software is not unique, and competition will show up. Perhaps a bigger player like MSFT would buy it and incorporate the technology.

DON'T BUY

Likes and uses its software, but it's still too close to its post-Covid hangover to buy. There are too many competitors, too.

BUY ON WEAKNESS

Allan Tong’s Discover Picks Taking a step back, DOCU revenues have climbed from $250 million in 2016 to $2.1 billion in its last fiscal year. Meanwhile, cash levels are rising. Flashforward to last week's report in which EPS clocked in at $0.44. That was actually down 6% from a year ago, but higher than the expected $0.42. Also impressing the street were revenues of $622.2 million beating $602 million (a 22% increase YOY). The company issued a rosy forecast of $626 million in revenues vs. the street's $625 million. Read 2 Big Technology Stocks That Are Back for our full analysis.

BUY ON WEAKNESS

Are spectacular buys in the tech space, even pandemic tech winners like Docusign. It just reported a surprise beat and shares are soaring. Post-Covid, it sold off hard and fast, but they still had a business going. Buy during sell-offs.

BUY ON WEAKNESS

Downgraded a lot today BOA downgraded it to a sell today, but he added to his holdings today. It's down 80% from its pandemic highs, but its products are everywhere. Not a great investment, sure, but DOCU is an essential part of any business that already uses it, and businesses rarely change their service systems. Also, companies and countries are reacting to the Russian invasion of Ukraine--they're asking, in which country is my data residing? He's in pain, but is averaging down. DOCU is a long-term bet. He's known the management since they were private--he's confident DOCU can pivot. He projects double-digit returns in 18 months.

DON'T BUY

Wall Street has left certain "pandemic" stocks for dead. They offer a valuable product that will expand its reach. But more business deals will be done face to face after Covid. DOCU is trading at 56x PE even after falling from highs. DOCU flew too high during Covid.

DON'T BUY

Reported a miss He had puts at the 95 put strike. My gosh. When this stock is taken out, it's not at 5-10%, but a quarter of the value of the company. Not good.

DON'T BUY

Represents change from risk-on to risk-off in markets. Peaked at over $300, now below $100. No fundamental floor, so nothing to support it besides a concept, albeit a good one. Extremely expensive at 7x revenue, doesn't make any money. Don't be lured by stocks that fall precipitously, as there may be no end in sight.

DON'T BUY

Cathy Wood bought a ton of shares after share plunged DOCU has a bright future, but this in the penalty box for a few quarters. As for Wood, he respects her, but wishes she would be more selective in what she buys.

Most Recent Experts

Joe Terranova

Virtus Investment Partners

Stephen Weiss, Founder, Short Hills Capital Partners

Short Hills Capital Partners

Rob Sechan, Managing Partner, New Edge Capital

New Edge Capital

Gordon Reid

GoodReid Investment Counsel