2 High-Growth Tech Stocks to Buy the Dips

It’s been an incredible start to the year for the Nasdaq Composite (COMPQ), with the index adding to its 40% return in 2020, up nearly 3% year-to-date. This is although we’ve seen a Blue Wave which has put the prospect of higher corporate taxes on the table, and the fact that valuations are at their highest levels since 1999. Given this landscape, it’s…

very difficult to find much value out there in the sector, and many names have enjoyed parabolic runs, up over 100% the last six months. Fortunately, two names remain both reasonably valued given their growth profiles, and these two names are DraftKings (DKNG) and DocuSign (DOCU). Let’s take a closer look at both companies below:

While DraftKings and DocuSign have little in common fundamentally, both names share one key trait: they have an exciting product/service with a significant tailwind in terms of demand, and they’ve also got incredible sales growth. This combination puts both names at the top of watchlists for growth stock investors and also increases their probability of outperforming, given that names with 40% plus annual sales growth tend to outperform the general market. Let’s take a closer look at both names below:

While I wouldn’t quite call DOCU a household name yet, it is the leading name in the E-Signature space, and the company has seen a flood of demand with COVID-19. Even though many consumers have been forced to stay home and businesses have migrated from the office in many cases, this has not stopped business globally from being conducted. DocuSign’s E-Signature product makes transactions in all industries possible without face to face contact, which is the only safe way to conduct business these days. The company’s growth to date has been incredible, with revenue up 77% year-over-year internationally and total revenue up 53% year-over-year to $283 million in the most recent quarter.

Meanwhile, the company’s customer base has increased to 822,000 customers globally, a staggering 46% increase year-over-year. While some critics point out that the company’s best days are behind it with vaccines beginning to roll out, I would argue the opposite. This is because the product is very sticky and saves businesses tens of thousands of dollars per year in travel and time by simply using E-Signature. This doesn’t mean that face to face meetings are suddenly going to stop just because of COVID-19, but…

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