Do you know what the world's most successful investors do when their favorite stocks are down? They buy more.
All three of these stocks provided significant gains in the first half of 2021, but they've been under a lot of pressure ever since. Here's why it's a good idea to take advantage of their relatively low prices.
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DocuSign
DocuSign (DOCU 0.10%) shares have already tumbled 14% in March, even though the company still hasn't reported results from the last three months of 2021. Now, you can scoop up the agreement services specialist at around 67% below the peak it reached last September.
DocuSign's stock price has been under a lot of pressure since its third-quarter performance made it clear that the pandemic boost the company experienced in early 2021 was only temporary. Total billings that reached $565 million during the three months ended Oct. 31, 2021, were 28% higher than during the previous year period. Unfortunately, the company had told investors to expect $585 million at the low end of a guided range provided in September.
With over 1.1 million customers, DocuSign is still the leading provider of agreement services, and its customers are deepening their relationships. Net dollar retention during the fiscal third quarter was 121%.
DocuSign thinks the market opportunity for preparing, signing, and managing agreements is more than $50 billion annually. With room to grow and a strong lead on the competition, this stock has what it takes to provide market-beating gains for patient investors.
Veeva Systems
Veeva Systems (VEEV -0.71%) shares sank around 20% the morning after the company reported fourth-quarter results on March 2, 2022. Now you can scoop up the software-as-a-service (SaaS) stock for around 45% less than it cost at its peak last October.
Veeva Systems reported revenue that surged 22% year over year to $486 million, but the market focused on forward-looking guidance that was softer than analysts were expecting. The average Wall Street analyst following Veeva Systems expected the company to forecast $526 million in total revenue for its fiscal first quarter, but the company told investors to expect around $495 million.
Veeva Systems' cloud-based services help biopharmaceutical companies manage customer relationships and reams of data produced in the course of drug development. Once a biotechnology company starts using Veeva's Vault service to manage clinical trial data, it's usually just a matter of time before they realize how much time they can save when it comes to assembling that data into an application package for the U.S. Food and Drug Administration.
Veeva's services are so sticky that subscription revenue retention was 119% for the year ended on Jan. 31, 2022. Without any serious competitors on the horizon ready to challenge Veeva in its niche market, investors can reasonably expect positive returns from this stock.
Shopify
Shopify (SHOP -2.37%) shares have tumbled by nearly a third since the company reported results from the last three months of 2021 on Feb. 14, 2022. Now you can buy this leading e-commerce stock at prices we haven't seen since April 2020.
Shopify's stock price fell hard in February after the company warned investors that it was choosing reinvestment into its future over profits in the present. It wasn't what analysts who were forecasting strong profits this year expected to hear, but it will help the company retain clients.
For direct-to-consumer merchants who can't afford their own warehouses, getting products to customers fast is a major challenge. With a 10% share of all e-commerce in the U.S., Shopify's already an individual merchant's best option when it comes to fulfillment services.
It wasn't so long ago that Amazon regularly disappointed the stock market with a lack of profits while it reinvested heavily in its business. The growth strategy worked out extremely well for patient Amazon shareholders, and odds are good that Shopify can do the same for its investors.
