We recently compiled a list of the 12 AI News and Ratings Investors Probably Missed. In this article, we are going to take a look at where DocuSign, Inc. (NASDQ:DOCU) stands against the other AI stocks that investors probably missed.
AI is increasingly shaping diverse industries, from healthcare and website design to cybersecurity. Companies are utilizing traditional AI and generative models to improve diagnostics, customer experiences, and business efficiency. While AI offers immense benefits, it also presents new challenges, especially in securing sensitive data. As businesses continue to innovate with AI, balancing its advantages and potential risks will be crucial for future growth.
READ ALSO: 15 AI News Investors Shouldn’t Miss and Jim Cramer Discussed 10 Stocks That Can Do Well in December.
Leveraging AI Across Sectors for Enhanced Efficiency
At the CNBC CFO Council Summit on December 4, Squarespace’s Nathan Gooden, Zoetis’s Wetteny Joseph, and Varonis’s Guy Melamed shared their insights on how artificial intelligence is being integrated into their businesses. From animal health and website development to cybersecurity, these executives discussed the ways AI is improving their operations, improving customer experiences, and addressing emerging challenges. They also explored the evolving role of generative AI and its potential impact on the future of their industries.
Wetteny Joseph discussed how AI is being used in animal health, noting the integration of traditional AI in diagnostic platforms for animals, such as a system that quickly analyzes slide images to identify health issues, with potential to expand into human healthcare. Nathan Gooden highlighted the long-standing use of machine learning in the platform, and the incorporation of generative AI to simplify the website design process for customers. Guy Melamed mentioned AI’s dual impact: improving customer protection while also presenting risks, such as exposing sensitive data via AI tools like co-pilot. His company focuses on securing data and preventing unauthorized access through these AI systems.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer in front of a computer screen, typing code to build the company’s electronic signature software.
DocuSign, Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 42
DocuSign, Inc. (NASDAQ:DOCU) provides e-signature solutions and contract lifecycle management tools to automate agreement workflows. Its services also include identity verification, document generation, and remote notarization, helping businesses streamline and digitize transactions, including AI-driven contract management and analytics.
DocuSign (NASDAQ:DOCU) reported its FQ3 2025 earnings on December 5, posting a non-GAAP EPS of $0.90, outperforming estimates by $0.03. The company’s revenue was up nearly 8% year-over-year at $754.82 million, which beat estimates by $9.5 million. For the next quarter, DocuSign (NASDAQ:DOCU) guided its revenue above consensus estimates of $756.2 million. The company sees its revenue between the range of $758 to $762 million. For the fiscal year ending January 31, 2025, the company expects revenues of $2.959 billion to $2.963 billion compared to consensus of $2.95 billion.
The company also released new AI features in its Navigator platform across five major markets. CEO, Allan Thygesen said:
“Also, just this week, we released new AI features in Navigator across five major markets, Australia, Canada, France, Germany, and the UK. In these countries, we’ve created AI models that meet local regulatory and compliance requirements.”
Overall DOCU ranks 10th on our list of the AI stocks that investors probably missed. While we acknowledge the potential of DOCU as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DOCU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.