1 Magnificent Growth Stock Down 83% to Buy on the Dip
The COVID-19 pandemic created a series of tailwinds for document technology company Docusign (NASDAQ: DOCU), because its software allows businesses to draft, negotiate, and close deals in the cloud. Demand soared when lockdowns and social restrictions took effect, which propelled Docusign stock to an all-time high of $310 in mid-2021.
But as social restrictions fell away, Docusign experienced a slowdown in its revenue growth, forcing the company to halt its aggressive spending and dramatically cut costs or face blowout losses. The pivot is bearing fruit, because Docusign is now consistently profitable, setting it up for a more sustainable long-term future.
Docusign shares still trade about 83% below their all-time high, but they now look cheap based on several traditional valuation metrics. Here's why investors might want to buy the stock now.
Source Fool.com
