Each week, Industry Focus: Financials host Jason Moser and Fool.com contributor Matt Frankel, CFP, discuss the stocks they're watching. This week, Frankel is going with the Vanguard REIT ETF (NYSEMKT:VNQ) in honor of The Motley Fool's new real estate investment website -- and because it's an all-around smart choice. Then, Moser discusses why DocuSign (NASDAQ:DOCU) could have some interesting times ahead.
A full transcript follows the video.
This video was recorded on March 11, 2019.
Jason Moser: OK, Matt, it's that time of the week. Again, we're going to wrap this up with One to Watch. What's your one to watch this week?
Matt Frankel: In honor of the Fool launching its new real estate brand this week --
Moser: What!? Real estate brand?! Tell me more!
Frankel: If you remember, I think that was a couple of months back when you had Matty A. on the show?
Frankel: The time has finally come. Our new real estate venture starts tomorrow. It's called Millionacres. Check it out. The site will be live at some point tomorrow. I'm very excited for that. So, in honor of that, and just because I think it's a great overall investment and a really great way to add diversification to your portfolio, I'm going to go ahead and recommend an ETF that focuses on real estate investment trusts. It's the Vanguard REIT ETF, ticker VNQ. It's a really low-cost way to get exposure to some of the best real estate investment trusts in the market without a lot of expense and without a lot of knowledge. If you're looking to tiptoe into real estate and add it to your portfolio, that's a really good way to start.
Moser: Yeah, great way to get exposure there. I love that. Hey, you might see me tomorrow, because I helped Matty put together some of that promotional material and the video announcing the service tomorrow. We had a lot of fun putting that together. I have to say, I was really impressed with how in-depth, not only the content is, but the ideas. It really covers the spectrum there. A lot of different ways to invest in real estate. I'm sure you guys are going to have a blast with it.
I'm going to be looking at DocuSign this week, ticker DOCU. DocuSign earnings come out on Thursday the 14th. If you don't know what DocuSign does, they offer e-signature solutions for businesses to digitally prepare, execute, and act on agreements. More and more, I believe this is how business is being conducted. If you've bought or sold a house recently, chances are you've probably signed something with DocuSign. It is a very clever solution, very easy to use, and it's becoming adopted more and more as a legitimate way of doing business. I can remember a long time ago where we would submit offers for a house, and it actually had to be faxed. I couldn't figure out why in the world, but there was something that said it had to be faxed. We're moving beyond that now, and DocuSign is a company that's helping to blaze that trail.
The stock is not really supported by any fundamentals. By that, I mean the business is not profitable yet. It's not cash flow positive if you back out that stock-based compensation. So, for me, I'm hoping we see this stock go on sale, because I have it at the top of my watchlist. I'd love to add it to my portfolio, just waiting for the right time.