Nasdaq Bear Market: 2 Stock Growth Decline To Buy Right Now

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Nasdaq Bear Market: 2 Stock Growth Decline To Buy Right Now

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After turbo growth in 2021, the Nasdaq composite it fell sharply as investors weighed inflation concerns. In fact, the heavy growth index recently fell more than 20% from its high, which means it has entered bear market territory (it is currently down about 18%). But many individual stocks have gone down much further. For example, DocuSign (DOCU 4.92% ) And which comprises (GLOB 0.96% ) they fell 73.8% and 27% respectively from their all-time highs.

However, these companies play a key role in the digital transformation (DX) industry, and DX spending is projected to increase from $ 1.8 trillion in 2022 to $ 2.8 trillion by 2025, according to International Data Corp. again, the shares of DocuSign and Globant appear relatively cheap compared to their historical valuations, which means that investors have the option to buy these stocks for sale.

Here’s what you should know about these two bearish growth stocks.

Investor analyzing paper and digital charts at their desk.

Image source: Getty Images.

1.DocuSign

Agreements are the lifeblood of any business. Departments such as sales, finance and human resources rely on agreements with customers, partners and employees. Unfortunately, the traditional paper-based processes used to generate contracts, acquire signatures, and act on agreements are time-consuming, complicated, and error-prone. This is where DocuSign can make a difference.

Its platform, the Cloud Agreement, is built around DocuSign eSignature, a tool that allows customers to acquire legally valid signatures on digital documents. As a pioneer in the industry, DocuSign has become the gold standard and holds a market share of over 70%. But over the years, its platform has expanded to include tools for automated contract generation, AI-powered analytics, electronic notarization, and digital payments. And these tools integrate with over 350 third-party technologies, including productivity platforms such as Microsoft 365 and customer relationship management software such as sales force.

Overall, DocuSign’s strong product portfolio and broad set of integrations fueled solid financial performance. Over the past year, revenue has grown 45% to $ 2.1 billion and free cash flow has skyrocketed 107% to $ 445.1 million. Better yet, despite indications that have disappointed Wall Street, the company is well positioned for future growth.

DocuSign currently boasts a Net Promoter Score (NPS) of 72. NPS is designed to measure customer experience and a score of 50 is considered excellent, while a score of 70 (or higher) is world-class. In other words, DocuSign has developed a great relationship with its customers. Even so, the company captured only 4% of its $ 50 billion addressable market, leaving plenty of room for future growth. And with stocks trading at 6.9x sales, much cheaper than the three-year average of 21.9x sales, now seems like a good time to buy this growing stock.

2. Global

Globalant provides IT consulting and product engineering services. The company helps its customers get their digital transformation projects in motion, whether that means rethinking product strategies, improving the customer experience, or implementing new technologies. To do this, Global employs over 22,000 IT professionals with a wide range of skills, from artificial intelligence and cloud computing to digital marketing and game development.

Globant’s extensive knowledge base has helped it win over a number of blue-chip clients, including Coca Cola, Alphabetis Google, and disney waltz. Better yet, the company increased its clientele by 42% to 1,138 last year, and 185 of those clients have spent over $ 1 million in the past 12 months, a 43% increase over 2020. Unsurprisingly, that is. has translated into impressive financial results. Over the past year, revenues increased 59% to $ 1.3 billion and earnings increased 67% to $ 2.28 per diluted share.

Looking ahead, the company is aiming for $ 154 billion in 2022 and management is working to exploit that opportunity through geographic expansion and its 100-square-foot growth strategy. Specifically, Globant prioritizes the top 100 accounts in terms of potential, with the goal of building lasting relationships with customers that could eventually generate $ 100 million (or more) in revenue.

So far, that strategy is working. Research firm Everest Group ranked Globant among the five fastest growing engineering service providers in the world last year. As companies continue to invest in digital transformation for years to come, Globant is well positioned to maintain this momentum. And with shares trading at a reasonable 7.6 times sales – below its three-year average of 8.3 times sales – this looks like a buying opportunity for long-term investors.

This article represents the author’s opinion, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis, even one of our own, helps all of us think critically about investing and make decisions that help us become smarter, happier, and richer.

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