The heightened fear of holding stocks created bargains for several companies.
In the digital document space, DocuSign (DOCU) traded in a range after it posted fiscal fourth-quarter results.
DocuSign earned $1.01 (non-GAAP per share). Revenue increased by 7.8% Y/Y to $836.86. Shares trade at half their price from last year. Growth is modest, but valuations are attractive, and profitability remains strong. The firm will accelerate its commercial business by increasing its addressable market.
Database firm Oracle (ORCL) found support at $150 in the last month. After the stock peaked at over $300 on hype driven by RPOs, or remaining performance obligations, investors are taking a small position. Oracle will increase its efficiency by restructuring, incurring restructuring costs of $2.1 billion. In the last quarter, the firm said it booked $156 billion in such costs in the last three months ended February. Restructuring cost the firm $982 million in the last nine months. By cutting thousands of employees, ORCL stock might recover as margins improve.
In the retail sector, Lululemon (LULU) posted fourth-quarter revenue of $3.64 billion. Its revenue and EPS guidance figures are below expectations. That would limit the stock’s upside, giving investors time to accumulate a position throughout this year.
Lululemon has a strong international business. The company is focused on reaccelerating the full health of the business. As trends improve in North America, Lululemon may rely less on product markdowns. That would lead to strong profit margins.
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