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Doximity (DOCS) Surges 6.6%: Is This an Indication of Further Gains?

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Doximity (DOCS - Free Report) shares soared 6.6% in the last trading session to close at $41.50. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.8% gain over the past four weeks.

Doximity recorded a strong price increase before its first-quarter fiscal 2023 earnings release with the latest Zacks Consensus Estimate showing significant upward revision for its quarterly revenues compared to the year-ago reported number. The company is expected to release its fiscal first-quarter earnings on Aug 9, 2022. The rapid growth of telehealth solutions in the post-COVID situation also looks encouraging for Doximity, which is a renowned digital platform for medical professionals, thereby raising our optimism regarding the stock.

This medical social networking site is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $89.34 million, up 22.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Doximity, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DOCS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Doximity is a member of the Zacks Medical Services industry. One other stock in the same industry, ModivCare (MODV - Free Report) , finished the last trading session 1.6% higher at $89.38. MODV has returned -8.7% over the past month.

For ModivCare, the consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $1.43. This represents a change of -32.9% from what the company reported a year ago. ModivCare currently has a Zacks Rank of #3 (Hold).


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