ZACKS·2025-10-16 13:25Market Overview - The recent bull market on Wall Street has persisted for three years, primarily driven by the adoption of generative AI technology, with cyclical sectors like industrials, financials, consumer discretionary, and utilities also participating [1] - The bull run is expected to continue due to a resilient U.S. economy, declining inflation, solid earnings results, and the Fed's low-interest rate regime and accommodative monetary policies [2] DocuSign Inc. (DOCU) - DocuSign's strength is attributed to its subscription revenues, which have been the majority of its top line over the past three years, and efficient international growth from selling expenses [4][11] - The company has a strong focus on R&D, enhancing product offerings and customer experience, supported by partnerships with tech giants like Salesforce and Microsoft [5][11] - Expected revenue and earnings growth rates for the current year are 7.1% and 3.9%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [6] - DOCU is trading at a 37% discount from its 52-week high, with a short-term average price target indicating a potential increase of 37.3% from the last closing price of $67.91, suggesting a maximum upside of 82.6% [7] Reddit Inc. (RDDT) - Reddit is experiencing strong growth in user engagement, with rising daily and weekly active users, ARPU gains, and expanding advertiser tools [8] - AI-powered features like Reddit Answers, which has over six million weekly users, are enhancing content discovery and personalization [9] - Expected revenue and earnings growth rates for the current year are 58.6% and over 100%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [10] - RDDT is currently trading at a 40.9% discount from its 52-week high, with a short-term average price target indicating an increase of 11.8% from the last closing price of $200.76, suggesting a maximum upside of 49.4% [12] Fair Isaac Corp. (FICO) - Fair Isaac is benefiting from strong financial performance driven by growth in its Scores and Software segments, with new scoring models enhancing predictive accuracy [13][14] - The Software segment shows strength with increased adoption of SaaS and license revenues, indicating strong platform engagement [14] - Expected revenue and earnings growth rates for the current year are 19.6% and 30.7%, respectively, with a 0.1% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [15] - FICO is trading at a 31.9% discount from its 52-week high, with a short-term average price target indicating a potential increase of 21.1% from the last closing price of $1,636.65, suggesting a maximum upside of 46.6% [16]