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DocuSign

Docusign offers Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its initial public offering in May 2018.

DocuSign Inc

DOCUSIGN ORD

HC Wainwright &amp; Co. analyst Robert Burns reiterates ArriVent BioPharma (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVBP#NASDAQ">AVBP</a>) with a Buy and maintains $36 price target.

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Price Target

Reiteration

Analyst Ratings

AVBP

HC Wainwright & Co. Reiterates Buy on ArriVent BioPharma, Maintains $36 Price Target

On Thursday, Nov. 14, U.S. markets ended lower after Fed Chair Jerome Powell dampened hopes for an interest rate cut, citing steady economic growth, a strong job market, and persistent inflation. Traders reduced bets on a December cut, leading to declines in the Dow, S&amp;P 500, and Nasdaq.
Powell&#8217;s remarks followed data showing a rise in producer prices for October, slightly higher than expected.
Related: <a target="_blank" href="https://www.benzinga.com/news/treasuries/24/11/41993899/powells-hawkish-remarks-shake-markets-stocks-fall-dollar-rockets-bitcoin-dips" rel="noreferrer noopener">Powell&#8217;s Hawkish Remarks Shake Markets: Stocks Fall, Dollar Rockets, Bitcoin Dips</a>
Economic data showed that U.S. jobless claims fell by 4,000 to 217,000 for the week ending Nov. 9, beating estimates of 223,000. Producer prices increased by 0.2% in October, matching market expectations after a revised 0.1% rise in September.
The majority of S&amp;P 500 sectors fell, led by consumer discretionary, industrials, and healthcare. However, tech and energy stocks ended higher.
The Dow Jones Industrial Average was down 0.47% and closed at 43,750.86, the S&amp;P 500 declined 0.50% to 5,949.17, and the Nasdaq Composite slid 0.64% to finish at 19,107.65.
Asia Markets Today
<ul>
<li>On Friday, Japan&#8217;s Nikkei 225 declined 0.35% and ended the session at 38,637.50, led by gains in the Warehousing, Shipbuilding, and Trading sectors.</li>
<li>Australia&#8217;s S&amp;P/ASX 200 rose 0.74% and ended the day at 8,285.20, led by gains in the Utilities, Gold, and Financials sectors.</li>
<li>India Markets were closed for the Guru Nanak Jayanti holiday.</li>
<li>China&#8217;s Shanghai Composite declined 1.45% to close at 3,330.73, and the Shenzhen CSI 300 fell 1.75%, finishing the day at 3,968.83.</li>
<li>Hong Kong&#8217;s Hang Seng slipped 0.09% and closed the session at 19,426.34.</li>
</ul>
Eurozone at 05:30 AM ET
<ul>
<li>The European STOXX 50 index was down 0.23%.</li>
<li>Germany&#8217;s DAX gained 0.14%.</li>
<li>France&#8217;s CAC fell0.04%.</li>
<li>UK&#8217;s FTSE 100 index traded higher by 0.02%.</li>
<li>European stocks were mixed after weak U.K. growth data, higher French inflation, and hawkish Fed remarks.</li>
</ul>
Commodities at 05:30 AM ET
<ul>
<li>Crude Oil WTI was trading lower by 1.35% at $67.78/bbl, and Brent was down 1.28% at $71.63/bbl.</li>
<li>Oil prices declined, heading for a weekly loss amid concerns over weakening Chinese demand and fewer anticipated U.S. rate cuts. Lower refinery output and slowing factory growth in China added pressure.</li>
<li>Natural Gas declined 2.44% to $2.717.</li>
<li>Gold was trading higher by 0.04% at $2,573.80, Silver gained 0.16% to $30.610, and Copper rose 1.6% to $4.1420.</li>
</ul>
US Futures at 05:30 AM ET
Dow futures decreased 0.44%, S&amp;P 500 futures were down 0.63%, and Nasdaq 100 futures fell 0.88%.
Forex at 05:30 AM ET
<ul>
<li>The U.S. Dollar Index declined 0.15% to 106.51, USD/JPY was down 0.60% at 155.30, and USD/AUD slid 0.25% to 1.5453.</li>
<li>The U.S. dollar hit near one-year highs after Fed Chair Powell&#8217;s hawkish comments boosted Treasury yields, pressuring equities. The dollar&#8217;s surge weighed on the euro, gold, and oil prices.</li>
</ul>
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CQQQ

PowerShares DBmmodity Index Optimum Yield Diversified Fund

EEMA

FLAX

CurrencyShares British Pound Sterling Trust

IEMG

IEUR

KraneShares Trust KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

KDIV

SPEM

USDU

PowerShares DB US Dollar Index Bullish Fund

Asia And Europe Markets Mixed; Fed's Hawkish Comments Boost Dollar - Global Markets Today While US Slept

HC Wainwright &amp; Co. analyst Robert Burns reiterates Cargo Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRGX#NASDAQ">CRGX</a>) with a Buy and maintains $33 price target.

CRGX

HC Wainwright & Co. Reiterates Buy on Cargo Therapeutics, Maintains $33 Price Target

HC Wainwright &amp; Co. analyst Matthew Caufield reiterates Kodiak Sciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KOD#NASDAQ">KOD</a>) with a Neutral and maintains $3 price target.

HC Wainwright & Co. Reiterates Neutral on Kodiak Sciences, Maintains $3 Price Target

HC Wainwright &amp; Co. analyst Robert Burns reiterates Caribou Biosciences (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRBU#NASDAQ">CRBU</a>) with a Buy and maintains $9 price target.

CRBU

HC Wainwright & Co. Reiterates Buy on Caribou Biosciences, Maintains $9 Price Target

HC Wainwright &amp; Co. analyst Matthew Caufield reiterates DiaMedica Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DMAC#NASDAQ">DMAC</a>) with a Buy and maintains $7 price target.

DMAC

HC Wainwright & Co. Reiterates Buy on DiaMedica Therapeutics, Maintains $7 Price Target

Needham analyst Joshua Reilly reiterates Digimarc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DMRC#NASDAQ">DMRC</a>) with a Buy and maintains $40 price target.

DMRC

Needham Reiterates Buy on Digimarc, Maintains $40 Price Target

References to "30+ delinquency rate" are to over-30 day loan delinquencies as a percentage of period-end loan receivables.&nbsp;

Synchrony Financial October 30+ Delinquency Rate 4.9% Vs. 4.6% Last Year; Net Charge-off Rate 6.2% Vs. 5.4% Prior Year - Filing

Digihost Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DGHI#NASDAQ">DGHI</a>) reported quarterly sales of $9.200 million which missed the analyst consensus estimate of $9.900 million by 7.07 percent. This is a 71.74 percent increase over sales of $5.357 million the same period last year.

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Earnings Misses

DGHI

Digihost Technology Q3 Sales $9.200M Miss $9.900M Estimate

The termination of Walmart program agreement, effective May 21, 2024, increased the Domestic Card net charge-off rate by 39 basis points for October 2024. Excluding this impact, the Domestic Card net charge-off rate would have been 5.43%

Capital One Financial October Credit Card Domestic 30+ Day Performing Delinquencies Rate 4.61%, Net Charge-Offs Rate 5.82% - Filing

Redburn Atlantic analyst Simon Baker upgrades Autolus Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUTL#NASDAQ">AUTL</a>) from Neutral to Buy and announces $13 price target.

Upgrades

AUTL

Redburn Atlantic Upgrades Autolus Therapeutics to Buy, Announces $13 Price Target

ALHC

Alignment Healthcare Enters Into Privately Negotiated Subscription Agreements With Certain Investors, Pursuant To Which It Will Issue $330M Principal Amount Of 4.25% Convertible Senior Notes Due 2029

AMPG

Amplitech Group Reports Q3 Revenues Of $2.834M, Exits Quarter With Cash & Equivalents Worth $2.352M

Redburn Atlantic analyst Harry Read initiates coverage on Insight Enterprises (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NSIT#NASDAQ">NSIT</a>) with a Buy rating and announces Price Target of $220.

Initiation

NSIT

Redburn Atlantic Initiates Coverage On Insight Enterprises with Buy Rating, Announces Price Target of $220

SMXT

SolarMax Technology Q3 EPS $(0.21) Down From $0.04 YoY, Sales $6.3M Down From $14.3M YoY

AUPH

Aurinia Presents Data Underscoring Critical Importance Of Earlier Lupus Nephritis Detection And Intervention And Value Of LUPKYNIS, A Second Generation Calcineurin Inhibitor

Redburn Atlantic analyst Harry Read initiates coverage on CDW (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDW#NASDAQ">CDW</a>) with a Buy rating and announces Price Target of $230.

Redburn Atlantic Initiates Coverage On CDW with Buy Rating, Announces Price Target of $230

Sigma Lithium (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGML#NASDAQ">SGML</a>) reported quarterly losses of $(0.31) per share which missed the analyst consensus estimate of $0.12 by 358.33 percent. The company reported quarterly sales of $20.894 million which missed the analyst consensus estimate of $72.779 million by 71.29 percent. This is a 78.46 percent decrease over sales of $97.000 million the same period last year.

SGML

Sigma Lithium Q3 2024 GAAP EPS $(0.31) Misses $0.12 Estimate, Sales $20.894M Miss $72.779M Estimate

Wolfe Research analyst Alexandria Hammond initiates coverage on Regeneron Pharmaceuticals (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REGN#NASDAQ">REGN</a>) with a Outperform rating and announces Price Target of $1150.

REGN

Wolfe Research Initiates Coverage On Regeneron Pharmaceuticals with Outperform Rating, Announces Price Target of $1150

In the wake of Donald Trump&#8217;s recent election victory, companies are rushing to tap into the US bond market, taking advantage of favorable conditions. Firms such as Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), Gilead Sciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>), and Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) have collectively raised over $50 billion in the past week.
What Happened: The surge in corporate borrowing is driven by a rally in credit and equity markets, which has pushed borrowing costs to historic lows. Investors are optimistic about potential tax cuts boosting profits, leading to a decrease in corporate borrowing costs relative to U.S. Treasuries, <a href="https://www.ft.com/content/5f9eb247-2851-4da7-ac19-62761fb46d1d">reported</a> The Financial Times on Friday. The U.S. investment-grade bond spreads were at 0.8 percentage points late Thursday, nearing their lowest since 1998.
Banks have been quick to capitalize on these conditions, with significant activity in the financial sector. 
See Also: <a href="https://www.benzinga.com/news/24/11/41963694/amid-appointment-of-elon-musk-vivek-ramswamy-team-trump-now-reportedly-planning-to-overhaul-military-posts?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amid Appointment Of Elon Musk, Vivek Ramaswamy, Team Trump Now Reportedly Planning To Overhaul Military Posts</a>
Why It Matters: The bond market has been experiencing heightened volatility, as evidenced by <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41746843/bond-market-fear-gauge-soars-to-1-year-high-ahead-of-us-election-results-bond-vigil">the MOVE index</a> reaching its highest level in over a year ahead of the U.S. election. 
Following Trump&#8217;s election, bond yields have <a href="https://www.benzinga.com/markets/bonds/24/11/41887642/bond-etfs-slide-as-fed-cuts-clash-with-trumps-fiscal-agenda">continued to rise</a>, complicating the Federal Reserve&#8217;s efforts to ease borrowing costs. The 10-year Treasury yield reached 4.34%, influenced by speculation surrounding Trump&#8217;s fiscal agenda.
Trump&#8217;s reelection has had a profound impact on financial markets, with the <a href="https://www.benzinga.com/trading-ideas/24/11/41977313/will-trumps-election-win-push-sp-500-even-higher-in-final-weeks-of-2024-over-75-say">S&amp;P 500 Index</a> reaching new all-time highs since the election. This contrasts the volatility experienced by the emerging <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41984852/trumps-red-wave-pushes-emerging-market-stocks-to-2-month-lows-volatility-expected-to-remain-elevated">market stocks dropping</a> to levels last seen in mid-September.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/11/41910180/exclusive-chris-christie-says-trump-will-remove-federal-restrictions-on-marijuana-find-sweet-spot-for-crypto-regulation?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">EXCLUSIVE: Chris Christie Says Trump Will Remove Federal Restrictions On Marijuana, Find &#8216;Sweet Spot&#8217; For&nbsp;Crypto Regulation (UPDATED)</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Bonds

General

GILD

Trump's Victory Spurs $50B Corporate Bond Surge As Tax Cut Optimism Drives Borrowing Costs To 25-Year Low

The SaaS industry is experiencing rapid evolution, enabling versatility, cost-efficiency, and enhanced customer retention, making it a compelling opportunity to capitalize on this trend. Thus, it could be wise to take a look at high-growth SaaS stocks like DocuSign (DOCU), Twilio (TWLO), and Smartsheet (SMAR). Read more… The SaaS (Software-as-a-Service) industry is booming, driven by increased digitalization, the rise of remote work and a shift towards cloud-based solutions. SaaS companies offer subscription-based services that enhance business efficiency, drive innovation, and provide strong data security, making them essential for modern enterprises.
With such strong industry fundamentals, high-growth SaaS stocks like DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>), Twilio Inc. (<a href="https://stocknews.com/stock/TWLO/">TWLO</a>), and Smartsheet Inc. (<a href="https://stocknews.com/stock/SMAR/">SMAR</a>) are poised for long-term returns. These companies offer innovative solutions that improve data management and streamline workflows, making them attractive options for investors looking to tap into this high-growth market.
SaaS companies are experiencing strong tailwinds because of their versatility, especially in verticals such as customer relationship management (CRM), cybersecurity, and enterprise resource planning (ERP). According to a report by <a href="https://www.saasacademy.com/blog/saas-statistics">SaaS Academy</a>, by the end of 2024, over 80% of businesses are expected to use at least one SaaS application in their operations, and 99% of companies will rely on some form of SaaS solution.
In line with these trends, global spending on SaaS is expected to <a href="https://www.gartner.com/en/newsroom/press-releases/2024-05-20-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-surpass-675-billion-in-2024#:~:text=SaaS%20spending%20is%20projected%20to%20grow%2020%25%20to%20total%20%24247.2%20billion%20in%202024.">grow by 20%</a>, reaching $247.20 billion in 2024. Furthermore, the global SaaS market is anticipated to hit $1.3 trillion by 2030, exhibiting a <a href="https://redline.digital/saas-industry-statistics/#:~:text=The%20global%20SaaS,108%20billion%20currently.">CAGR of 19.7%</a>. The United States currently holds a dominant market share of $108 billion, making SaaS one of the most attractive sectors for high-growth investments.
Considering these conducive trends, let's examine the <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry stocks in detail, beginning with the third choice:
Stock #3: Twilio Inc. (<a href="https://stocknews.com/stock/TWLO/">TWLO</a>)
TWLO provides a customer engagement platform comprising international communications application programming interfaces. It operates through two segments: Twilio Communications and Twilio Data &amp; Applications.
On October 1, TWLO and OpenAI collaborated to integrate OpenAI's Realtime API into its platform. This integration will enable TWLO to build conversational AI applications and agents, which will bring customers more natural interactions to the platform.
On September 9, TWLO announced expanded accessibility of Rich Communication Services (RCS) messaging via its Programmable Messaging and Verify APIs to enhance branded and verified messaging and build customer trust in its source.
In the fiscal second quarter that ended on June 30, 2024, TWLO's revenue increased 4.3% year-over-year to $1.08 billion with a non-GAAP gross margin of 53.3% (up 110 bps year-over-year). The company reported non-GAAP income from operations of $175.32 million, indicating a 45.9% growth from the prior-year quarter.
TWLO's non-GAAP net income came in at $150.12 million, up 48.9% year-over-year, while its non-GAAP net income per share grew 61.1% from the year-ago value to $0.87. Also, its <a href="https://www.investopedia.com/terms/f/freecashflow.asp">free cash flow</a> increased 174.7% year-over-year to $197.58 million.
According to the financial guidance for fiscal year 2024, the company's non-GAAP income from operations is projected to be between $650 million and $675 million, with organic revenue growth anticipated to range from 6%-7%.
The consensus revenue estimate of $1.09 billion for the fiscal third quarter (ended September 2024) represents a 5.8% increase year-over-year. The consensus EPS estimate of $0.86 for the same quarter indicates a 47.6% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Moreover, TWLO's revenue has grown at CAGRs of 23.4% and 36.9% over the past three and five years, respectively. In addition, its levered FCF increased at 39% CAGR over the past three years.
The stock has gained 22.9% over the past year to close the last trading session at $70.50.
TWLO's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
TWLO has an A grade for Growth and a B for Value and Sentiment. It is ranked #10 out of 18 stocks in the A-rated <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry. <a href="https://stocknews.com/stock/TWLO/">Click here</a> to see the additional ratings for TWLO (Momentum, Stability, and Quality).
Stock #2: Smartsheet Inc. (<a href="https://stocknews.com/stock/SMAR/">SMAR</a>)
SMAR provides a work management platform for organizations, allowing them to plan, capture, manage, automate, and report on work at scale. The company's platform enables teams of all sizes to manage custom processes, programs, and portfolios that fit, and it delivers its cloud-based software platform globally through a subscription model.
On October 8, SMAR announced its strategic collaboration with AWS to launch a new connector for Amazon Q Business that synchronizes data and provides insights to the customers. This new connector will allow the generative AI-powered assistant to answer customers' queries through a unified search experience.
SMAR's total revenue for the second quarter (ended July 31, 2024) increased 17.3% year-over-year to $276.41 million. Its non-GAAP operating income grew 135.7% from the prior year's quarter to $45.29 million. The company's non-GAAP net income amounted to $61.64 million and $0.44 per share, reflecting an increase of 180% and 175% year-over-year, respectively. In addition, SMAR's free cash flow rose 25.6% from the year-ago value to $57.15 million.
As per the fiscal year 2025 financial outlook, SMAR forecasts total revenue to range between $1.116 billion and $1.121 billion. The company also expects non-GAAP operating income to be between $177 million and $182 million and a free cash flow of $240 million. It also expects non-GAAP net income per share to be between $1.36 and $1.39.
Street expects SMAR's revenue for the fiscal third quarter (ending October 2024) to increase 15.4% year-over-year to $283.87 million. Its EPS for the same period is expected to register a 90.1% growth from the prior year, settling at $0.30. In addition, it surpassed the consensus revenue and EPS in each of the trailing four quarters, which is excellent.
Over the past three and five years, SMAR's revenue grew at CAGRs of 31.6% and 36.5%, respectively, while its levered FCF grew at 47.3% CAGR over the past five years.
Over the past six months, the stock has gained 53.1%, closing the last trading session at $56.02.
It's no surprise that SMAR has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Sentiment and Quality. Out of 18 stocks in the same A-rated industry, SMAR is ranked #6.
Beyond what is stated above, we've also rated SMAR for Value, Momentum, and Stability. Get all SMAR ratings <a href="https://stocknews.com/stock/SMAR/">here</a>.
Stock #1: DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU provides cloud-based electronic signature solutions that enable sending and signing agreements, allowing organizations to do business faster with less risk and at a lower cost. It also offers contract lifecycle management software that automates workflows.
On June 4, DOCU announced the launch of a new connector for SAP Ariba solutions that will help automate workflows between DOCU's CLM and SAP Ariba, streamlining the source-to-pay process. This launch enhances DOCU's market position and firmly establishes the company as a leader.
On May 31, DOCU completed its acquisition of Lexion, a leading AI-powered agreement management company. This acquisition will strengthen DOCU's Intelligent Agreement Management (IAM) capabilities, bringing more insights, analysis, and automation to its customers.
For the second quarter of 2025, which ended on July 31, DOCU's total revenues increased 7% year-over-year to $736.03 million. Its non-GAAP income from operations stood at $237.16 million, indicating a 39.6% growth from the prior-year quarter.
DOCU's non-GAAP net income rose 34.3% from the year-ago value to $200.99 million, while its non-GAAP net income per share stood at $0.97, up 34.7% year-over-year. Also, the company's non-GAAP free cash flow grew by 7.8% from the year-ago value to $197.93 million.
Per the outlook for fiscal year 2025, DOCU expects its total revenue to be between $2.94 billion and $2.95 billion. It forecasts subscription revenue to range from $2.86 billion to $2.88 billion, with billings between $2.99 and $3.03 billion. Additionally, DOCU expects its non-GAAP operating margin to fall in the range of 29% to 29.5%.
Analysts expect DOCU's revenue for the third quarter ending October 31, 2024, to increase 6.4% year-over-year to $745.31 million, while its EPS for the same period is expected to grow 10.2% from the prior-year quarter to $0.87. The company surpassed consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
DOCU's revenue has grown at CAGRs of 16.8% and 28.1% over the past three and five years, respectively. Likewise, the company's total assets have increased at a CAGR of 16.8% over the past three years.
DOCU shares have surged 74.2% over the past year and 27.9% over the past month to close the last trading session at $72.60.
DOCU's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It also has an A grade for Quality and a B for Growth and Value. Within the Software - SAAS industry, it is ranked first. <a href="https://stocknews.com/stock/DOCU/">Click here</a> to see DOCU's ratings for Momentum, Stability, and Sentiment.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
DOCU shares were unchanged in premarket trading Thursday. Year-to-date, DOCU has gained 22.12%, versus a 23.66% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/docu-twlo-smar-3-high-growth-saas-stocks-with-market-beating-potential/>3 High-Growth SaaS Stocks With Market-Beating Potential</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Growth SaaS Stocks With Market-Beating Potential

The technology industry is well-positioned for significant growth thanks to continued innovation in the software and services field. Amid this backdrop, it could be wise to buy undervalued tech stocks, such as SS&C Technologies Holdings (SSNC), DocuSign (DOCU), and Dropbox (DBX), with "Strong Buy" ratings. Continue reading… Businesses heavily depend on software solutions to enhance operations, elevate customer experiences, gain data-driven insights, and protect their systems as they strive to adapt and stay competitive in the ever-changing digital landscape, leading to a tech revolution.
Thus, investors could consider adding fundamentally sound tech stocks SS&amp;C Technologies Holdings, Inc. (<a href="https://stocknews.com/stock/SSNC/">SSNC</a>), DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>), and Dropbox, Inc. (<a href="https://stocknews.com/stock/DBX/">DBX</a>) to their portfolios, which are currently trading relatively cheaply. Additionally, these stocks have a "Strong Buy" rating in our proprietary rating system.
The software industry is growing due to increasing demand for digital transformation across businesses and rapid advancements in AI, cloud computing, and automation, which enhance efficiency and innovation.
Additionally, the shift to remote work and the rise of SaaS models have further fueled its expansion. The software market is projected to grow at a <a href="https://www.marketresearchfuture.com/reports/software-market-11924">CAGR of 11.9%</a> by 2032, which shows how in-demand tech is currently.
Moreover, the growing popularity of cloud-based software and rising concern to automate business processes are continuously increasing the demand for IT services worldwide. Cloud-based IT services are experiencing rapid growth among SMEs since 2022 and are expected to capture more than <a href="https://www.industryarc.com/Research/IT-Services-Market-Research-501180">80% of the market share by 2025</a>. 
Considering these conducive factors, let's take a look at the fundamentals of the three tech stock picks.
SS&amp;C Technologies Holdings, Inc. (<a href="https://stocknews.com/stock/SSNC/">SSNC</a>)
SSNC provides software products and software-enabled services to financial services and healthcare industries. Its products and services allow professionals in these industries to automate complex business processes and manage information processing requirements.
SSNC's forward <a href="https://www.investopedia.com/terms/e/ev-ebitda.asp">EV/EBITDA</a> of 10.80x is 8.5% lower than the industry average of 11.79x. Its forward EV/EBIT multiple of 11.13 is 33.4% lower than the industry average of 16.70.
For the second quarter, which ended June 30, 2024, SSNC reported total revenues at $1.45 billion, which is up 6.5% year-over-year. The company's net income stood at $190.30 million and $0.75 per share, up 45.6% and 47% year-over-year, respectively.
Analysts expect SSNC's revenue for the third quarter (ended September 2024) to increase 5.5% year-over-year to $1.44 billion, while its EPS is expected to grow 7.6% year-over-year to $1.26. In addition, the company surpassed the consensus EPS and revenue estimates in three of the trailing four quarters.
Over the past year, the stock has gained 41.4% to close the last trading session at $73.69.
SSNC's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
SSNC has a B grade for Growth, Stability, Sentiment, and Value. It is ranked #3 out of 129 stocks in the <a href="https://stocknews.com/category/software-application/">Software - Application</a> industry.
Beyond what is stated above, we've also rated SSNC for Quality and Momentum. Get all SSNC ratings <a href="https://stocknews.com/stock/SSNC/">here</a>.
DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU offers electronic signature solutions internationally. The company provides an e-signature solution that enables the sending and signing of agreements, Contract Lifecycle Management that automates workflows, Document Generation streamlines the process of generating new, custom agreements, and more.
DOCU's forward EV/EBITDA of 12.47x is 13.5% lower than the industry average of 14.42x. Its forward EV/EBIT multiple of 13.82 is 31% lower than the industry average of 20.03.
In the second quarter that ended July 31, 2024, DOCU's total revenue increased 7% year-over-year to $736 million. Its gross profit grew 37.3% from the year-ago value to $580.56 million. Its non-GAAP net income and non-GAAP EPS were $200.99 million and $0.97, up 34.3% and 34.7% year-over-year, respectively.
Street expects DOCU's revenue to increase 6.4% year-over-year to $745.31 million for the third quarter ending October 2024. The company's EPS for the same quarter is expected to increase 10.2% year-over-year to $0.87. Also, DOCU surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
The stock has gained 58.8% over the past year to close the last trading session at $66.89.
DOCU's robust fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Quality and a B for Value and Growth. DOCU is ranked first out of 18 stocks in the <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry.
<a href="https://stocknews.com/stock/DOCU/">Click here</a> to access the additional DOCU ratings (Momentum, Sentiment, and Stability).
Dropbox, Inc. (<a href="https://stocknews.com/stock/DBX/">DBX</a>)
DBX provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features.
DBX's trailing-12-month EV/EBITDA of 9.10x is 36.9% lower than the industry average of 14.42x. Its forward EV/EBIT multiple of 10.66 is 46.8% lower than the industry average of 20.03.
DBX's total revenue for the fiscal second quarter that ended June 30, 2024, amounted to $634.50 million, up 1.9% year-over-year. The company's non-GAAP net income stood at $194.10 million and $0.60 per share, up 11.6% and 17.6% year-over-year, respectively.
For the quarter ended September 30, 2024, DBX's revenue is expected to increase marginally year-over-year to $637.19 million. Its EPS for the same quarter is expected to be $0.53. It surpassed consensus revenue and EPS estimates in each of the trailing four quarters.
Over the past three months, the stock gained 14.6%, closing the last trading session at $25.48.
DBX's POWR Ratings reflect bright prospects. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
The stock has an A grade for Quality and a B for Value. DBX is ranked #7 out of 77 stocks in the <a href="https://stocknews.com/category/technology-services/">Technology - Services</a> industry.
In addition to the POWR Ratings highlighted above, one can access DBX's ratings (Growth, Momentum, Stability, and Sentiment) <a href="https://stocknews.com/stock/DBX/">here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
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<hr />
SSNC shares were trading at $74.48 per share on Wednesday afternoon, up $0.79 (+1.07%). Year-to-date, SSNC has gained 23.23%, versus a 22.37% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/ssnc-docu-dbx-3-undervalued-tech-stocks-with-strong-buy-ratings/>3 Undervalued Tech Stocks With Strong Buy Ratings</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Undervalued Tech Stocks With Strong Buy Ratings

The SaaS sector offers a blend of innovation and resilience, making it an intelligent investment as businesses turn to cloud solutions. Given this trend, it could be wise to invest in high-growth SaaS stocks, DocuSign (DOCU), Twilio (TWLO), and Smartsheet (SMAR). Keep reading… As more companies rely on cloud solutions and AI-driven tools to enhance operations and boost efficiency, the SaaS (Software-as-a-Service) industry is expected to develop significantly. Thus, investors might want to scoop up shares of SaaS stocks, such as DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>), Twilio Inc. (<a href="https://stocknews.com/stock/TWLO/">TWLO</a>), and Smartsheet Inc. (<a href="https://stocknews.com/stock/SMAR/">SMAR</a>), given their growth potential.
As the SaaS industry evolves, growth potential lies not only in core functionalities but also in strategic partnerships and expanding service portfolios. Modern technological advances have also contributed to the growth of personalized products, and that has <a href="https://medium.com/@marketing.cyperstudio/evolution-of-the-saas-industry-the-rise-of-customized-saas-products-fe2a77eb9964">enabled SaaS providers to provide highly customized systems</a> that can adapt and learn from user behavior thanks to machine learning, artificial intelligence, and advanced analytics.
According to <a href="https://www.statista.com/outlook/tmo/public-cloud/software-as-a-service/worldwide">Statista</a>, the global SaaS market is anticipated to reach $793.10 billion by 2029, exhibiting a CAGR of 19.3%. It is estimated that by 2025, <a href="http://pages.bettercloud.com/rs/719-KZY-706/images/2020_StateofSaaSOpsReport.pdf">85% of business apps will be SaaS-based</a>.  Gartner predicts that by 2026, <a href="https://www.gartner.com/en/newsroom/press-releases/2021-08-02-gartner-says-four-trends-are-shaping-the-future-of-public-cloud">public cloud spending is projected to exceed 45%</a> of all enterprise IT spending.
Moreover, SaaS companies often generate recurring revenue through subscription models, which ensures cash flow stability and makes them resilient during economic downturns. This makes them a compelling addition to portfolios with long-term goals.
Now, let's take a closer look at the fundamentals of the <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> stocks mentioned above, beginning with the third choice.
Stock #3: Twilio Inc. (<a href="https://stocknews.com/stock/TWLO/">TWLO</a>)
TWLO provides a customer engagement platform comprising international communications application programming interfaces. It operates through two segments: Twilio Communications and Twilio Data &amp; Applications.
On October 1, TWLO and OpenAI collaborated to integrate OpenAI's Realtime API into its platform. This integration will enable TWLO to build conversational AI applications and agents, which will bring customers more natural interactions to the platform.
On September 9, TWLO announced expanded accessibility of Rich Communication Services (RCS) messaging via its Programmable Messaging and Verify APIs to enhance branded and verified messaging and build customer trust in its source.
In the fiscal second quarter that ended on June 30, 2024, TWLO's revenue increased 4.3% year-over-year to $1.08 billion with a non-GAAP gross margin of 53.3% (up 110 bps year-over-year). The company reported non-GAAP income from operations of $175.32 million, indicating a 45.9% growth from the prior-year quarter.
TWLO's non-GAAP net income came in at $150.12 million, up 48.9% year-over-year, while its non-GAAP net income per share grew 61.1% from the year-ago value to $0.87. Also, its <a href="https://www.investopedia.com/terms/f/freecashflow.asp">free cash flow</a> increased 174.7% year-over-year to $197.58 million.
According to the financial guidance for fiscal year 2024, the company's non-GAAP income from operations is projected to be between $650 million and $675 million, with organic revenue growth anticipated to range from 6%-7%.
The consensus revenue estimate of $1.09 billion for the fiscal third quarter (ended September 2024) represents a 5.8% increase year-over-year. The consensus EPS estimate of $0.86 for the same quarter indicates a 47.6% improvement year-over-year. The company has an impressive surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
Moreover, TWLO's revenue has grown at CAGRs of 23.4% and 36.9% over the past three and five years, respectively. In addition, its total assets increased at 15.5% CAGR over the past five years.
The stock has surged 34.5% over the past year and 17.6% over the past three months to close the last trading session at $70.60.
TWLO's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
TWLO has an A grade for Growth and a B for Value and Sentiment. It is ranked #9 out of 18 stocks in the A-rated <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry. <a href="https://stocknews.com/stock/TWLO/">Click here</a> to see the additional ratings for TWLO (Momentum, Stability, and Quality).
Stock #2: Smartsheet Inc. (<a href="https://stocknews.com/stock/SMAR/">SMAR</a>)
SMAR provides a work management platform for organizations, allowing them to plan, capture, manage, automate, and report on work at scale. The company's platform enables teams of all sizes to manage custom processes, programs, and portfolios that fit, and it delivers its cloud-based software platform globally through a subscription model.
On October 8, SMAR announced its strategic collaboration with AWS to launch a new connector for Amazon Q Business that synchronizes data and provides insights to the customers. This new connector will allow the generative AI-powered assistant to answer customers' queries through a unified search experience.
SMAR's total revenue for the second quarter (ended July 31, 2024) increased 17.3% year-over-year to $276.41 million. Its non-GAAP operating income grew 135.7% from the prior year's quarter to $45.29 million.
The company's non-GAAP net income amounted to $61.64 million and $0.44 per share, reflecting increases of 180% and 175% year-over-year, respectively. In addition, SMAR's free cash flow rose 25.6% from the year-ago value to $57.15 million.
As per the fiscal year 2025 financial outlook, SMAR forecasts total revenue to range between $1.116 billion and $1.121 billion. The company also expects non-GAAP operating income to be between $177 million and $182 million and a free cash flow of $240 million. It also expects non-GAAP net income per share to be between $1.36 and $1.39.
Street expects SMAR's revenue for the fiscal third quarter (ending October 2024) to increase 15.4% year-over-year to $283.87 million. Its EPS for the same period is expected to register a 90.1% growth from the prior year, settling at $0.30. In addition, it surpassed the consensus revenue and EPS in each of the trailing four quarters, which is excellent.
Over the past three and five years, SMAR's revenue income grew at CAGRs of 31.6% and 36.5%, respectively, while its levered FCF grew at 47.3% CAGR over the past five years.
Over the past six months, the stock has gained 46%, closing the last trading session at $55.89.
It's no surprise that SMAR has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Sentiment and Quality. Out of 18 stocks in the same A-rated industry, SMAR is ranked #6.
Beyond what is stated above, we've also rated SMAR for Value, Momentum, and Stability. Get all SMAR ratings <a href="https://stocknews.com/stock/SMAR/">here</a>.
Stock #1: DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU provides cloud-based electronic signature solutions that enable sending and signing agreements, allowing organizations to do business faster with less risk and at a lower cost. It also offers contract lifecycle management software that automates workflows.
On June 4, DOCU announced the launch of a new connector for SAP Ariba solutions that will help automate workflows between DOCU's CLM and SAP Ariba, streamlining the source-to-pay process. This launch should enhance DOCU's market position and firmly establish the company as a leader.
On May 31, DOCU completed its acquisition of Lexion, a leading AI-powered agreement management company. This acquisition will strengthen DOCU's Intelligent Agreement Management (IAM) capabilities, bringing more insights, analysis, and automation to its customers.
For the second quarter of 2025, which ended on July 31, DOCU's total revenues increased 7% year-over-year to $736.03 million. Its non-GAAP income from operations stood at $237.16 million, indicating a 39.6% growth from the prior-year quarter.
DOCU's non-GAAP net income rose 34.3% from the year-ago value to $200.99 million, while its non-GAAP net income per share stood at $0.97, up 34.7% year-over-year. Also, the company's non-GAAP free cash flow grew by 7.8% from the year-ago value to $197.93 million.
Per the outlook for fiscal year 2025, DOCU expects its total revenue to be between $2.94 billion and $2.95 billion. It forecasts subscription revenue to range from $2.86 billion to $2.88 billion, with billings between $2.99 and $3.03 billion. Additionally, DOCU expects its non-GAAP operating margin to fall in the range of 29% to 29.5%.
Analysts expect DOCU's revenue for the third quarter ending October 31, 2024, to increase 6.4% year-over-year to $745.32 million, while its EPS for the same period is expected to grow 10.6% from the prior-year quarter to $0.87. The company surpassed consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
DOCU's revenue has grown at CAGRs of 16.8% and 28.1% over the past three and five years, respectively. Likewise, the company's total assets have increased at a CAGR of 16.8% over the past three years.
DOCU shares have surged 76.1% over the past year and 25.8% over the past three months to close the last trading session at $70.56.
DOCU's bright prospects are reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It also has an A grade for Quality and a B for Growth and Value. Within the A-rated Software - SAAS industry, it is ranked #2. <a href="https://stocknews.com/stock/DOCU/">Click here</a> to see DOCU's ratings for Momentum, Stability, and Sentiment.
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DOCU shares were trading at $71.34 per share on Thursday afternoon, up $0.78 (+1.11%). Year-to-date, DOCU has gained 20.00%, versus a 22.96% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: ShreyaRathi</h2> <img src='https:/wp-content/uploads/2024/10/0.jpeg' style="float:left; padding:5px;width:125px;"><a href="https://stocknews.com/authors/?author=shreya-rathi">More...</a>The post <a href=https://stocknews.com/news/docu-twlo-smar-3-high-growth-saas-stocks-to-buy-before-the-next-boom/>3 High-Growth SaaS Stocks to Buy Before the Next Boom</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Growth SaaS Stocks to Buy Before the Next Boom

Bearish flow noted in DocuSign (DOCU) with 3,209 puts trading, or 1.3x expected. Most active are Nov-24 55 puts and Nov-24 60 puts, with total volu...

DocuSign put volume heavy and directionally bearish

With robust demand, and the need for higher efficiency, the SAAS market is poised for continued growth and expansion. Therefore, it could be ideal to closely monitor high-growth SAAS stocks UiPath (PATH), CCC Intelligent Solutions (CCCS), and DocuSign (DOCU) for substantial benefit. Read on... The popularity of Software-as-a-Service (SAAS) is rapidly surging among organizations to boost their efficiency and adopt the latest technologies. SAAS has emerged as a prominent force in the technology and business landscape, and this trend is set to continue further as organizations deploy and use software.
Given the industry's strong outlook, investors could consider high-growth SAAS stocks UiPath Inc. (<a href="https://stocknews.com/stock/PATH/">PATH</a>), CCC Intelligent Solutions Holdings Inc. (<a href="https://stocknews.com/stock/CCCS/">CCCS</a>), and DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>) in November.
With the rapid transformation from traditional software applications to cloud-based software services, the Software-as-a-service market is poised to expand exponentially. Companies are increasingly investing in digital transformation and adopting trends like Vertical SaaS, DaaS, and iPaaS in order to boost their operational efficiency, cost-effectiveness, and versatility.
<a href="https://www.gartner.com/en/newsroom/press-releases/2024-05-20-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-surpass-675-billion-in-2024#:~:text=SaaS%20spending%20is%20projected%20to,consumption%20model%2C%E2%80%9D%20said%20Nag.">Gartner projected worldwide end-user spending</a> on public cloud services to increase by 20.4%, reaching $675.4 billion this year, driven by generative AI (GenAI) and application modernization.
Also, SaaS continues to dominate the cloud market in end-user spending, having a projection of 20% growth in spending to reach $247.2 billion in 2024.
Following these lucrative trends, the global Software as a Service (SaaS) market is expected to grow from $317.55 billion in 2024 to $1.23 billion by 2032, exhibiting growth at a <a href="https://www.fortunebusinessinsights.com/software-as-a-service-saas-market-102222">CAGR of 18.4%</a>. In global comparison, the U.S. SaaS market is anticipated to grow to $236.69 billion by 2032, driven by the adoption of public and hybrid cloud-based tools.
With growing needs, companies engaged in SAAS services are positioned to capitalize on the industry's bright prospects and will yield high growth in the long run. Thus, investors could scoop up high-growth SaaS companies' stocks to advance their portfolios.
Now, let's take a closer look at the fundamentals of the top <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> stocks mentioned above, beginning with the third choice.
Stock #3: UiPath Inc. (<a href="https://stocknews.com/stock/PATH/">PATH</a>)
PATH provides an end-to-end automation platform offering a diverse range of international robotic process automation (RPA) solutions. It provides a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization.
On October 22, PATH announced a strategic partnership with Inflection AI to integrate the UiPath Platform with the new Inflection for Enterprise solution, enabling enterprises to achieve greater levels of operational efficiency and effectiveness without compromising trust and AI security options.
The strategic partnership will integrate Inflection AI within UiPath Autopilot and provide an important private cloud alternative for agentic automation tailored to the industries.
On October 15, PATH announced the integration of the UiPath Platform with the SAP Build Process Automation solution, to be sold as one of the SAP Solution Extensions. The offering will enable true enterprise-wide transformation by allowing customers to embrace a holistic view of automation across heterogeneous environments that span both SAP and non-SAP systems.
For the second that ended July 31, 2024, PATH's total revenue increased 10.1% year-over-year to $316.25 million. Its non-GAAP <a href="https://www.investopedia.com/terms/g/grossprofit.asp#:~:text=Gross%20profit%2C%20or%20gross%20income,fluctuate%20compared%20to%20production%20output.">gross profit</a> grew 6.6% from the year-ago value to $263.18 million. Also, the company's non-GAAP net income amounted to $23.76 million or $0.04 per share for the quarter, respectively.
Furthermore, as of July 31, 2024, the company's non-GAAP adjusted free cash flow was $149.78 million.
Analysts expect PATH's revenue and EPS for the fiscal year (ending January 2026) to increase 11.3% and 10.5% year-over-year to $1.58 billion and $0.44, respectively. Further, the company has topped the consensus revenue and EPS estimates in all four trailing quarters.
PATH's stock has surged 3.1% over the past three months to close the last trading session at $12.70.
PATH's solid outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Growth and Quality. Within the A-rated <a href="https://stocknews.com/category/software-saas/">Software - SAAS</a> industry, PATH is ranked #11 among 18 stocks.
<a href="https://stocknews.com/stock/PATH/">Click here</a> to access additional ratings of PATH (Stability, Value, Sentiment, and Momentum).
Stock #2: CCC Intelligent Solutions Holdings Inc. (<a href="https://stocknews.com/stock/CCCS/">CCCS</a>)
CCCS operates as a software-as-a-service company for the property and casualty insurance economy. Its cloud-based SaaS platform connects trading partners, facilitates commerce, and supports mission-critical, artificial intelligence-enabled digital workflow across the insurance economy.
On September 4, CCCS launched CCC&#xAE; Payroll, a new solution designed to streamline payroll management for collision repair shops. CCC Payroll is integrated into the CCC ONE&#xAE; platform and enables shops to track production and labor and streamline payroll within a single system, simplifying the payroll process.
The new solution simplifies the payroll process and gives greater visibility to employees.
On July 30, CCCS unveiled CCC&#xAE; Intelligent Reinspection, a new solution designed to help auto insurers streamline the review of incoming repair facility estimates, expediting repairer workflows and claims resolutions. The new solution leverages AI technology, and identifies areas for review, and provides reason codes based on insurer rules, helping reinspectors.
For the third quarter that ended on September 30, 2024, CCCS' revenues increased 7.8% year-over-year to $238.48 million. Its adjusted gross profit rose 8% from the prior year's period to $185.93 million. The company's adjusted operating income of $91.19 million reflects growth of 10.3% from the previous year's quarter.
Furthermore, the company's adjusted net income stood at $62.58 million and $0.10 per share, up 9.5% and 11.1% year-over-year, respectively. Its adjusted EBITDA increased 9.3% from the year-ago value to $101.55 million.
Analysts expect CCCS' revenue for the fourth quarter (ending December 2024) to increase 7.3% year-over-year to $245.23 million. For the same period, its EPS is expected to grow 8% year-over-year to $0.10. Further, the company topped the consensus revenue and EPS estimates in all trailing four quarters, which is remarkable.
Over the past year, the stock has gained 2.3% to close the last trading session at $10.93.
CCCS' sound fundamentals are reflected in its POWR Ratings. The stock has an overall grade of A, translating to a Strong Buy in our proprietary rating system.
CCCS has a B grade for Momentum, Stability, Sentiment, and Growth. It is ranked #4 among the 18 stocks within the A-rated Software - SAAS industry.
To see the other ratings of CCCS for Quality and Value, <a href="https://stocknews.com/stock/CCCS/">click here</a>.
Stock #1: DocuSign, Inc. (<a href="https://stocknews.com/stock/DOCU/">DOCU</a>)
DOCU provides electronic signature solutions internationally. The company provides an e-signature solution, enabling the sending and signing of agreements on various devices, Contract Lifecycle Management (CLM), Document Generation streamlines the process of generating new, custom agreements, and Gen for Salesforce.
On June 4, DOCU launched a new connector for SAP Ariba solutions that automate workflows between Docusign CLM and SAP Ariba solutions to help businesses accelerate time to value and eliminate friction in source-to-pay agreement processes. The launch enhanced DOCU's market position and firmly established the company as a leader.
On May 31, DOCU acquired Lexion, a leading AI-powered agreement management company. The acquisition strengthened DOCU's position in Intelligent Agreement Management (IAM) and added more AI-assisted capabilities to its platform, bringing more insights, analysis, and automation to its customers.
DOCU's total revenues increased 7% year-over-year to $736.03 million during the second quarter that ended on July 31, 2024. It reported non-GAAP income from operations of $237.16 million, indicating growth of 39.6% year-over-year. The company's non-GAAP free cash flow grew 7.8% from the year-ago value to $197.93 million.
Additionally, the company's non-GAAP net income came in at $200.99 million and $0.97 per share, up 34.3% and 34.7% from the prior year's quarter, respectively.
According to the company's fiscal year 2025 outlook, DOCU expects total revenue between $2.94 billion and $2.95 billion, while it forecasts subscription revenue to range from $2.86 billion to $2.88 billion.
For the third quarter (ending October 2024), analysts expect DOCU's revenue to grow 6.4% year-over-year to $745.32 million. For the same period, the company's EPS is expected to increase 10.6% year-over-year to $0.87. Also, it has surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.
DOCU's stock has surged 22.9% over the past six months and 80.9% over the past year to close the last trading session at $70.15.
DOCU's POWR Ratings reflect its promising prospects. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.
DOCU has an A grade for Quality and a B grade for Growth and Value. It is ranked #2 among 18 stocks in the same industry.
In addition to the POWR Ratings I've just highlighted, you can see DOCU's ratings for Stability, Momentum, and Sentiment <a href="https://stocknews.com/stock/DOCU/">here</a>.
What To Do Next?
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<hr />
DOCU shares were trading at $68.98 per share on Wednesday afternoon, down $1.17 (-1.67%). Year-to-date, DOCU has gained 16.03%, versus a 23.16% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/docu-path-cccs-3-high-growth-saas-stocks-to-watch-in-november/>3 High-Growth SaaS Stocks to Watch in November</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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