Investors interested in Internet - Software stocks are likely familiar with DocuSign (DOCU) and Autodesk (ADSK) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to ...

Group 1: AI Chatbot Market Dynamics - OpenAI's ChatGPT currently holds 68% of the AI chatbot market, a decrease from 87.2% a year ago, while Google's Gemini has rapidly increased its market share to 18.2% from 5.4% in January 2025 [2] - The competition in the generative AI chatbot space is intensifying, particularly with the success of Gemini [1] Group 2: Investment and Valuation Trends - SoftBank is in discussions to invest up to $30 billion in OpenAI's latest funding round, which could elevate OpenAI's valuation to approximately $830 billion [2] - Anthropic has raised its revenue forecast for 2026 by 20% to $55 billion, indicating strong growth potential in the AI sector [3] Group 3: Emergence of Agentic AI - 'Agentic AI' represents a new wave of AI technology capable of achieving complex goals with minimal human oversight, exemplified by the Clawdbot (now Moltbot) [5] - The rise of agentic AI is causing traditional software stocks to face selling pressure as investors anticipate disruption [5] Group 4: Corporate Investments and Stake Valuations - Zoom has seen its shares surge following its $53 million investment in Anthropic, with its stake now valued at least $2 billion [4] - Other major tech companies, including Amazon, also hold stakes in Anthropic, reflecting the growing interest in AI technologies [4]

Core Viewpoint - DocuSign is expected to report positive earnings growth and revenue increase in its upcoming financial results, despite recent stock underperformance compared to the broader market and its sector Financial Performance - In the upcoming earnings report, analysts anticipate DocuSign to post earnings of $0.95 per share, reflecting a year-over-year growth of 10.47% [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $827.15 million, which is an increase of 6.56% from the previous year [2] - For the full year, the Zacks Consensus Estimates predict earnings of $3.79 per share and revenue of $3.21 billion, indicating year-over-year changes of +6.76% and +7.83% respectively [3] Analyst Estimates - Recent changes to analyst estimates for DocuSign suggest positive short-term business trends, which are generally viewed as favorable for the company's outlook [3] - The Zacks Rank system, which reflects these estimate changes, currently rates DocuSign as 3 (Hold) [5] Valuation Metrics - DocuSign is trading with a Forward P/E ratio of 14.64, which is below the industry average Forward P/E of 23.28, indicating a potential discount [6] - The company has a PEG ratio of 1.02, compared to the Internet - Software industry's average PEG ratio of 1.37, suggesting that DocuSign's stock may be undervalued relative to its expected earnings growth [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 77, placing it in the top 32% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [8]

Group 1 - DocuSign Inc (NASDAQ:DOCU) is considered one of the best large-cap stocks under $100, with a significant upside potential of almost 40% based on a median 1-year price target of $80.23 from analysts [1] - The stock has received coverage from 16 analysts, with 3 Buy ratings and 13 Hold calls, indicating a generally positive outlook without any Sell ratings [1] - Citizens analyst Patrick Walravens has set a price target of $124.00 for DocuSign, suggesting an upside of nearly 116%, driven by strong fundamental factors and a large customer base of 1.7 million [2] Group 2 - DocuSign's electronic signature solutions have transformed agreement workflows globally, reducing documentation processing time through digitization and automation [4] - The company also provides contract lifecycle management services and AI-enabled analytics, enhancing its service offerings to users worldwide [4] - The Identity and Access Management (IAM) product cycle is viewed as a compelling long-term opportunity, with approximately 150 million opted-in customer agreements expected to drive subscription revenue growth [3]

Company Performance - DocuSign (DOCU) stock increased by 2.62% to $57.50, outperforming the S&P 500's daily gain of 0.55% [1] - Over the past month, DocuSign shares have declined by 19.54%, underperforming the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 0.71% [1] Earnings Expectations - Analysts expect DocuSign to report earnings of $0.95 per share, reflecting a year-over-year growth of 10.47% [2] - The consensus estimate for quarterly revenue is $827.15 million, which represents a 6.56% increase from the previous year [2] Annual Forecast - Zacks Consensus Estimates project earnings of $3.79 per share and revenue of $3.21 billion for the year, indicating changes of +6.76% and +7.83% respectively compared to the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for DocuSign indicate shifting business dynamics, with upward revisions suggesting analysts' positive outlook on the company's profitability [4] Stock Performance Correlation - Research shows that revisions in estimates correlate with stock price performance, and the Zacks Rank model utilizes these changes to provide an operational rating system [5] Zacks Rank and Valuation - DocuSign currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 14.8, which is lower than the industry average Forward P/E of 23.12 [6] - The PEG ratio for DocuSign is 1.04, compared to the Internet - Software industry's average PEG ratio of 1.39 [7] Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [7][8]

Core Insights - Docusign has evolved from a leading e-signature technology provider to a comprehensive suite of software tools for managing the entire contract lifecycle, which gained significant traction during the COVID-19 pandemic [1] - The stock reached an all-time high of $310 in late 2021 but has since fallen 81% as conditions normalized [2] - The launch of the Intelligent Agreement Management (IAM) platform, which leverages AI for contract management, is seeing strong demand and may drive a stock recovery [3] Company Developments - IAM addresses inefficiencies in contract management, with Deloitte estimating that businesses lose $2 trillion annually due to these inefficiencies [5] - Key features of IAM include a digital repository called Navigator for easy contract storage and retrieval, and AI-Assisted Review to identify risks and opportunities in contracts [5][6] - As of the end of Docusign's fiscal 2026 third quarter, over 25,000 businesses adopted IAM, marking a 150% increase from six months prior [7] Market Context - Docusign's tools were crucial for businesses to continue operations during the pandemic, but demand decreased as social conditions improved in 2022, leading to a significant drop in stock value [8]

Core Insights - DocuSign (DOCU) stock has experienced a significant decline of 20.7% in less than a month, dropping from $70.43 on December 22, 2025, to $55.82 currently, raising the question of whether this dip presents a buying opportunity [2] - Historically, the median return for DOCU stock in the 12 months following sharp declines (defined as a drop of 30% or more within 30 days) has been -26%, with a median peak return of 31% [2][8] Historical Performance - Since January 1, 2010, DOCU has encountered five instances where the stock price fell by 30% or more within a 30-day period [5] - The median duration to achieve peak return following a dip event is 30 days [8] - The median maximum drawdown within one year of a dip event for DOCU is -42% [8] Financial Quality Assessment - It is essential to evaluate revenue growth, profitability, cash flow, and balance sheet strength to determine if a dip indicates a decline in business health for DOCU [5]

Core Viewpoint - The software sector, particularly Software as a Service (SaaS) companies, is facing significant challenges due to the emergence of AI tools like Claude Code, which can drastically reduce the time required for software development and potentially disrupt traditional revenue models based on annual licensing [2][5][4]. Group 1: Impact of AI on Software Companies - Claude Code has demonstrated the ability to recreate a year's worth of work in just one hour, raising concerns for SaaS firms that rely heavily on yearly licensing for revenue [2]. - The introduction of Claude Code has shifted the perception of software from being an AI beneficiary to an AI victim, as it automates entire workflows and reduces the need for expensive software licenses [5][4]. - Major software companies, including Salesforce, DocuSign, and Atlassian, are at risk of losing revenue due to the capabilities of AI tools like Claude Code [4][5]. Group 2: Company-Specific Challenges - Salesforce, the original SaaS company, faces the risk of losing high-margin license revenue as AI agents can perform the work of hundreds of human representatives [6][5]. - DocuSign, which thrived during the pandemic, is now at risk of obsolescence as e-signature solutions are increasingly bundled into larger platforms like Microsoft 365, and AI agents may bypass its offerings entirely [8][9]. - Atlassian, known for its workflow tools, risks redundancy of its platforms as AI agents simplify workflow integration, potentially impacting its bottom line significantly [11]. Group 3: Stock Performance and Market Sentiment - Adobe shares have declined over 25% in the last 12 months, reflecting broader struggles within the software sector [1]. - Salesforce shares dropped 7% in a single session following negative news about Adobe and Claude Code, indicating heightened selling pressure [7]. - DocuSign shares have reached a new 52-week low, with strong resistance at the 50-day simple moving average, suggesting ongoing challenges in regaining investor confidence [10]. - Atlassian shares have lost more than 15% in the last ten days, with a bearish MACD crossover indicating a potential continuation of the downtrend [12].

Core Viewpoint - DocuSign's stock has experienced a decline, and the investment community is closely monitoring its upcoming earnings performance, which is expected to show growth in both earnings per share and revenue [1][2]. Group 1: Stock Performance - In the latest trading session, DocuSign (DOCU) was down 5.03% at $56.69, which was a smaller decline compared to the S&P 500's loss of 0.06% [1]. - Prior to the recent trading, DocuSign shares had lost 13.99%, underperforming the Computer and Technology sector's gain of 2.88% and the S&P 500's gain of 1.99% [1]. Group 2: Earnings Estimates - The upcoming earnings release for DocuSign is projected to show earnings per share (EPS) of $0.95, reflecting a 10.47% increase from the same quarter last year [2]. - Revenue for the same quarter is estimated at $827.15 million, indicating a 6.56% rise from the equivalent quarter last year [2]. Group 3: Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $3.79 per share and revenue of $3.21 billion, showing increases of +6.76% and +7.83% respectively from the previous year [3]. - Recent revisions to analyst forecasts for DocuSign are important, as positive revisions indicate analyst optimism about the company's business and profitability [3]. Group 4: Valuation Metrics - DocuSign currently has a Forward P/E ratio of 15.77, which is lower than the industry average of 23.54, suggesting that DocuSign is trading at a discount [6]. - The company has a PEG ratio of 1.1, compared to the Internet - Software industry's average PEG ratio of 1.42 [6]. Group 5: Industry Context - The Internet - Software industry, which includes DocuSign, has a Zacks Industry Rank of 57, placing it in the top 24% of over 250 industries [7]. - Strong industry rankings are correlated with performance, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [7].

Group 1 - Silver prices have increased fourfold in recent years, driven by narratives of dollar debasement and limited supply alongside growing industrial demand [1][19] - The narrative surrounding silver includes its dual identity as both a precious and industrial metal, with increasing demand from sectors like solar energy and electrification [18][19] - Despite the supply-demand imbalance, it is argued that the recent surge in silver prices is not justified and may represent a bubble [2][19] Group 2 - The concept of micro bubbles is introduced, characterized by isolated price surges that have little impact on broader financial markets, contrasting with macro bubbles [3][20] - Historical examples of micro bubbles, such as altcoins, NFTs, and meme stocks, illustrate how narratives can drive prices beyond economic value, leading to significant losses for latecomers [5][10][19] - The silver market is questioned whether it resembles previous micro bubbles, with the potential for a price correction if it significantly exceeds fair value [20][21]