Back to top

Image: Bigstock

Doximity (DOCS) Outperforms Broader Market: What You Need to Know

Read MoreHide Full Article

In the latest trading session, Doximity (DOCS - Free Report) closed at $41.88, marking a +1.11% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.78%.

Shares of the medical social networking site have depreciated by 4.93% over the course of the past month, underperforming the Medical sector's loss of 4.09% and the S&P 500's gain of 1.67%.

Analysts and investors alike will be keeping a close eye on the performance of Doximity in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2024. On that day, Doximity is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 18.18%. Our most recent consensus estimate is calling for quarterly revenue of $127.05 million, up 11.83% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.05 per share and a revenue of $520.23 million, signifying shifts of +10.53% and +9.43%, respectively, from the last year.

Any recent changes to analyst estimates for Doximity should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Doximity presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Doximity has a Forward P/E ratio of 39.28 right now. This represents a premium compared to its industry's average Forward P/E of 18.88.

Investors should also note that DOCS has a PEG ratio of 3.76 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical Services was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 32% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Doximity, Inc. (DOCS) - free report >>

Published in