I want to let you into my brokerage account, but promise me that you won't share my password with anyone else. I guess want I'm saying is that I want to share some of my favorite stocks with you.
I'm not talking about my largest holdings. You look like you're angling for some fresh intel, so let's look at some of my newest holdings.
I initiated new positions in DocuSign (DOCU -1.83%), DraftKings (DKNG -0.85%), and Corsair Gaming (CRSR -0.86%) last month. Step inside. Let's see why these three growth stocks are now hanging out in my portfolio.
The last time I wrote about DocuSign was in February, when I singled out the leader in e-signatures and digital-document management as one of two stocks that I was hoping to buy the next time the market crashes. The market, in general, hasn't buckled, but with DocuSign and so many great growth companies correcting sharply, I lived up to that promise of intent.
I've been kicking myself for not picking up shares for the no-brainer winner sooner. Last summer, I pointed out how much I regretted missing out on the stock's success, but it would be another eight months before I finally took the plunge.
Here's a painful two-step recipe for regret. This is DocuSign's one-year chart.— Rick Munarriz (@Market) July 8, 2020
Step 1: Pick the date when you realized that e-signatures were the future.
Step 2: Kick yourself for not buying #DocuSign stock at the time. $DOCU pic.twitter.com/RZs8HDF8S5
Some folks mistakenly dismiss DocuSign as a pandemic play, but we're not going back to wet signatures anytime soon. Revenue rose 57% and adjusted earnings per share more than tripled in its latest quarter. DocuSign routinely trounces Wall Street profit targets and beat those estimates by at least 68% in each of the last three quarters.
If you're a sports fan, it's hard to dodge DraftKings. The brand has brokered exclusivity deals with sports leagues, major broadcasting networks, and even individual teams to make its fantasy sports platform ubiquitous.
DraftKings also runs an online sportsbook, and using fantasy sports as a gateway drug to its more lucrative gambling operations is brilliant. Earlier this week, it announced that it was acquiring a popular gambling-content creator. The house always wins when it's playing with the DraftKings playbook.
There are now 1.5 million active players on DraftKings, a 44% surge over the past year. Average revenue per player is up a whopping 55%, fueling the 98% burst in pro forma revenue in its latest quarter.
The pandemic made DraftKings smarter, expanding into new markets when the biggest leagues were on hold. It will be able to cash in on those chips for years to come.
The more obscure of my favorite stocks is actually the one that's been in business the longest. Corsair has been around since 1994 as a maker of PC components for do-it-yourself enthusiasts. It's been picking up its game lately on the strength of the video gaming industry, in general, and e-sports, in particular.
Live streaming is a booming market, and Corsair is making the gear to make diehard gamers even more popular online. It puts out memory products and liquid cooling kits that light up within glass-encased PCs. It offers gaming keyboards, streaming headsets, and even decks with programmable buttons so players can make their live streams appear to be multicamera productions.
Growth is picking up nicely. Corsair's revenue rose 10% in 2018, 17% in 2019, and a whopping 55% last year. The pandemic will be a hard act to follow, but Corsair still sees 10% top-line growth this year. It's also not outrageously priced, fetching 21 times trailing earnings and less than double its revenue.
DocuSign, DraftKings, and Corsair Gaming are strong growth stocks. They posted year-over-year top-line gains of 57%, 98%, and 70%, respectively, in their latest quarters.
I own them now. Please see yourself out of my portfolio at this point. I have some more shopping to do.