We have just gone past the fifth anniversary of the incredible events of the COVID-19 period.

While the stock market sell-off around COVID-19 was unprecedented, the bull market that started immediately after was also fascinating.

Many companies exposed to digital commerce saw their share prices soar higher.

Unfortunately, the post-COVID period eventually turned into a stock market "hangover" in 2022, and many of these companies sold off hard.

Recently, though, some of them have been recovering. As they fulfilled their digital promise, the stocks moved higher once again.

We have called these “Echo Trades.”

Today’s HX Trader idea is one of these “Echo Trades” in a company we bet you know.

Here is the idea…

The company is electronic signature solutions firm DocuSign, Inc. (DOCU).

Founded in 2003, this San Francisco, CA, company has become the global leader in software that helps document authorization. Today, the company employs almost 7,000 people and operates in over 180 countries.

For many of us, the concept of electronically signing a document has become – "Can you DocuSign that for me?"

The company went public in 2018 and has capitalized on its strong technological positioning to post consistent growth in earnings.

This table displays their earnings per share or "EPS" results since they came public…

Today, they manufacture a wide range of safety products beyond just the TASER products. This includes body cameras, evidence databases, drones, and robotics.

In recent years, the business has experienced tremendous growth.

The table shows their earnings per share or "EPS" results over the last ten years…

The company has managed to grow every year.

Like many companies that were COVID-19 beneficiaries, they saw a significant uptick in growth during the post-COVID period. Unlike most of them, they still grew off of those inflated numbers.

This speaks to the power of their competitive positioning.

This positioning has also evidenced itself in their earnings results. The company has consistently beat analysts' expectations for EPS results.

Here is a table showing all of their reports since they became public…

The company has beat every single report – except one during the post-COVID period.

With this consistent track record of beating numbers, the company has also seen consistently rising estimates.

Here is a chart showing the analysts’ estimates for 2026 EPS…

The numbers have moved consistently higher since late 2022, and you can see that the stock began to follow late last year.

In our introduction, we discussed the idea of an "Echo Trade." These are stocks that were much higher during the height of the COVID BULL market and then traded off.

Here is the stock price chart for DOCU since it came public…

The chart shows that the stock traded from its IPO price of $29 in 2018 to a high of over $310 per share in late 2021. From there, the stock fell almost -90% before bottoming in late 2022.

Since then, the stock has begun to recover with a strong run, starting in late 2024. Look closely at the chart, though; you can see that it has recently pulled back.

Here is a shorter-term price chart and a chart showing our key technical indicator for determining when to buy a stock – the relative strength index or "RSI" …

The stock has sold off so much that it recently triggered our RSI “buy” signal. This is when the stock trades below an RSI of 30 and back above that level.

Why has the stock sold off so much?

There has been no news. The company's last reported results in early December were so strong that it sent the shares up almost +30% that day.

Since that gap was higher, though, the shares have drifted lower.

We don’t think there has been any real catalyst for the move lower. The valuation isn’t demanding, and the company has been delivering strong results.

In the last few years, if you bought the stock after triggering our RSI “buy” signal it has been a good bet.

Here is a table showing how it has performed afterward…

Buying the stock has paid off almost three-quarters of the time within a couple of months.

With the company reporting results next week, we think they are going to post strong results again. We believe it is time for our readers to sign on to some potential profits!