DocuSign Stock: Leader In E-Signature Market Resists Coronavirus Market Correction Docusign Inc DOCU $ 78.85 $1.531.98%276% IBD Stock Analysis Relative strength line pointing north; RS Rating at 96 out of 99 Shares bounced off the 200-day line, after Q4 earnings report Shares trying to reclaim 50-day line, which would be positive Composite Rating 98/99 Industry Group Ranking 5/197 Emerging Pattern High RS * Not real-time data. All data shown was captured at 1:37PM EDT on 03/16/2020. DocuSign is the IBD Stock of the Day as the maker of software that digitizes contract paperwork shows robust relative strength amid the coronavirus market correction. DocuSign stock has outperformed on views that less business travel will lead to more companies signing contracts electronically over the internet. San Francisco-based DocuSign(DOCU) owns a Relative Strength Rating of 96 out of a possible 99, according to IBD Stock Checkup. The best stocks tend to have an 80 or better RS Rating. DocuSign's relative strength line has climbed since the software maker reported fourth-quarter earnings and issued fiscal 2021 guidance last week. The relative strength line, the blue line in the chart above, compares a stock's price performance with that of the S&P 500. An upward-trending RS line tells you the stock is outperforming the general market. But keep in mind that amid the China coronavirus market correction, all stock purchases are highly risky. Until market volatility settles down, it's not a good time to be buying any stocks. DocuSign Stock: Resilient To Coronavirus Impact? DocuSign is the biggest provider of software that automates the filing of contracts and certifies electronic signatures. Even so, it's not immune to the impact on global economies of the coronavirus market correction. A potential lift in e-signature usage could be offset by an extended sales cycle for its own agreements. And, DocuSign recently canceled its own in-person user conference. "While the number of business agreements being signed globally may decline, those that are continuing to work are enabled by DocuSign to close agreements without meeting face to face," William Blair analyst Bhavan Suri said in a report to clients. He added: "We expect that DocuSign will be relatively resilient in this environment given digital nature of the products DocuSign provides and the remote implementation options." DocuSign Stock: Competition With Adobe Further, the leader in the e-signature market competes with Adobe Systems(ADBE) as well as startup HelloSign, now part of Dropbox(DBX). DocuSign stock went public at 29 in April 2018. The company focuses on industries such as financial services and insurance, telecom and health care/life sciences. It's also pushing into the federal government market. DocuSign stock hit an all-time high of 92.55 on Feb. 19. Shares were up 2% to 78.85 in recent action. DocuSign on March 12 reported fourth-quarter earnings that topped estimates. The software maker's stock popped 12.6% the next day, bouncing off its 200-day moving average. That's a bullish indicator. If it reclaims its 50-day moving average, that would be another positive signal. DocuSign Earnings Double DocuSign said fourth-quarter adjusted earnings were 12 cents a share, up 100% from the year-earlier period. Revenue rose 38% to $274.9 million. For full-year fiscal 2021, DocuSign said it expects revenue of $1.274 billion and billings of $1.44 billion. Analysts had projected revenue of $1.22 billion. Many companies are upgrading manual business workflows to digital systems. "We see DocuSign well positioned within the defensive category of digital transformation spend," DocuSign stock analyst Stan Zlotsky of Morgan Stanley said in his note. In addition, non-U.S. business accounted for about 18% of revenue in the January quarter. DocuSign sells software mainly in the U.K., Australia, and Canada. Other markets include France, Brazil, Germany, and Japan. DocuSign Acquisitions DocuSign acquired SpringCM in 2019 for $220 million to expand its product line into contract life cycle management. Also, DocuSign on Feb. 27 agreed to buy Seal Software for $188 million. The startup uses artificial intelligence for contract analytics. Other enterprise software makers also aim to get an edge with AI tools. "The opportunity to reduce time spent on manual workflows through the addition of Seal to the portfolio can help bolster the value proposition and drive ROI (return on investment) for customers," DocuSign stock analyst Alex Zukin of RBC Capital said in a report. Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing. https://www.investors.com/research/...market-resists-coronavirus-market-correction/