Shares of cloud-based agreement-service provider, (NASDAQ: DOCU) briefly surged in response to a quarterly report that, in some ways, was better than expected. Unfortunately, the stock fell once investors had more time to digest management's forward outlook. Now, DocuSign shares are around 82% below the all-time high they set in 2021.

The latest quarter wasn't the first time that Docusign beat analyst expectations. Could a big rally be around the corner for this beaten-down growth stock? Let's take a closer look to see if it deserves a place in your portfolio right now.

Wall Street predicted the company would earn an adjusted $0.56 per share during the fiscal first quarter that ended April 30. DocuSign blew past expectations by reporting adjusted earnings that surged 89% year over year to $0.72 per share.

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Source Fool.com