The shares of this cloud-based software company were recently initiated at RBC Capital and upgraded at Wedbush with an ‘Outperform’ rating.
DocuSign, Inc. (DOCU)
From Cabot Growth Investor
DocuSign, Inc. (DOCU) has pulled in, this week, but the chart looks fine; the 25-day line is obviously far away given the stock’s huge post-earnings run, but beyond that shares are holding the vast majority of their early-September gains.
Overall, this still has the look of a new leader, with a powerful blastoff after some fundamental worries were cleared up (slowing billings growth in Q1 gave way to a 47% bump in billings in Q2). Obviously, the market is going to have a say in the stock’s intermediate-term future, but at this point DOCU’s dip looks normal—and buyable, at least for a small position.
Encouragingly, even before the recent rally, the number of mutual funds owning shares totaled 579, more than double a year ago, and we’re betting those owners will be building positions going forward and even more will be coming onboard.
Michael Cintolo, Cabot Growth Investor,www.cabotwealth.com, 978-745-5532, September 26, 2019