WEEKLY NOTION: Stocks: DocuSign and Nikol

Stocks on Wall Street ended in positive territory on Friday, with the S&P 500 and Nasdaq closing at new record highs amid ongoing optimism over COVID-19 vaccine progress.

Friday’s gains added to the market’s surge this month. The Dow Jones is on pace for its biggest monthly gain since January 1987, up 12.9% in November. The S&P 500 and NASDAQ climbed 11.3% and 11.9%, respectively over the same period.

Investors will be watching fresh COVID-19 vaccine headlines as well as developments surrounding the pandemic in the week ahead, amid worries the record surge in cases will lead to further restrictions.

Below we highlight one stock that has proven it can successfully navigate the current market swings and another likely to see additional losses in the coming days:

Stock to Buy: DocuSign

DocuSign is widely considered the leader in the e-signature market—has thrived this year as the COVID-19 pandemic and the shift to a work-from-home environment created soaring demand for its services.

Shares of the San Francisco, California-based software-as-a-service company have more than doubled in 2020, jumping 206%, easily outpacing the benchmark S&P 500’s 12.6% rise over the same timeframe.

DOCU stock closed at $226.87 on Friday, giving the leading provider of electronic signature technology a valuation of roughly $41.6 billion.

DocuSign Daily

DocuSign, whose second-quarter results—released in early September—easily topped estimates, is scheduled to next report earnings on Thursday, Dec 3 after the closing bell.

Stock to Dump: Nikola

Investors may want to stay away from Nikola this week, amid mounting concerns that the embattled electric truck maker’s all-important $2 billion deal with General Motors will not be finalized ahead of the looming Thursday, Dec 3 deadline.

The proposed deal would give GM an 11% stake in Nikola to engineer and manufacture the company’s hydrogen fuel cell electric pickup truck, called the Badger, while Nikola would get access to GM’s Ultrium batteries and Hydrotec fuel cells.

The agreement was initially slated to close on Sept 30 but was delayed, in part because of a scathing report by a short-selling investment firm that accused the electric vehicle startup of misleading investors.

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Disclaimer: The above analysis is a view of the author.