Please ensure Javascript is enabled for purposes of website accessibility

2 Stocks We’re Watching Right Now

By Motley Fool Staff – May 15, 2019 at 3:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Now that earnings season is coming to a close, here’s what we’re watching.

Each week, Industry Focus: Financials host Jason Moser and contributor Matt Frankel, CFP each discuss a stock on the top of their watch lists. This week, Frankel thinks Markel (MKL 0.40%) could be a great value play, while Moser has his eye on Docusign (DOCU 1.80%), which he feels could have tons of growth potential.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. A full transcript follows the video.

This video was recorded on May 13, 2019.

Jason Moser: OK, Matt, let's wrap it up this week, as always, with One to Watch. What is a stock you've got your eye on this week?

Matt Frankel: I'm going to change what I planned to talk about and mention Markel. After hearing what you said, one thing really stood out to me. You said Markel's not a cheap stock at 1.5X book. But to put that in perspective, that's almost exactly where Berkshire is right now. They're trading at the same valuation. Which one has more growth potential over time? If you can get Markel for the same valuation price to book as Berkshire, I would pay that all day for the growth potential long-term.

Moser: Well, I like that! I like that perspective there! I agree. Markel, clearly, as the smaller business, has more growth prospects there. That's an interesting point there on the valuation. Listen, every once in a while, you have to call an audible, man! Good call there!

I'm going to go with a company probably a lot of listeners out there have heard of to this point now. It's still relatively new on the markets. DocuSign, the cloud-based e-signature solution that probably everyone has used at this point. You may not even realize you've used it. When you have to sign any kind of a document -- and I'm talking about anything from loans to insurance papers, anything of contractual agreement -- DocuSign is one of the market leaders there in making sure that you get those documents signed, and they're able to manage the workflow of those documents. For me, that's the interesting part of the businesses, as they evolve and become more than just this e-signature business. It was a company built very much on the technology of today in the cloud, which is encouraging. Strong balance sheet there with close to $800 million on the balance sheet. We talk about unprofitable businesses; DocuSign is one of those. But again, still relatively new to the public markets. They're working their way to profitability pretty quickly. They reported another really good quarter. They added 23,000 new customers. They have a global base of now closing in on 500,000 customers. A lot of interesting things about this business. It's got a lot of qualities we like. I own shares myself. I think it's certainly one that listeners ought to take a look at as well.

Jason Moser owns shares of DocuSign and Markel. Matthew Frankel, CFP owns shares of Markel. The Motley Fool owns shares of and recommends DocuSign and Markel. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Markel Corporation Stock Quote
Markel Corporation
$1,074.12 (0.40%) $4.23
DocuSign Stock Quote
$52.60 (1.80%) $0.93

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.