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Doximity (DOCS) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest close session, Doximity (DOCS - Free Report) was down 1.44% at $59.38. The stock's change was less than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 0.39%.

The stock of medical social networking site has risen by 3.92% in the past month, leading the Medical sector's loss of 1.83% and undershooting the S&P 500's gain of 5.88%.

The investment community will be paying close attention to the earnings performance of Doximity in its upcoming release. The company is slated to reveal its earnings on August 7, 2025. The company is forecasted to report an EPS of $0.31, showcasing a 10.71% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $139.67 million, indicating a 10.26% growth compared to the corresponding quarter of the prior year.

DOCS's full-year Zacks Consensus Estimates are calling for earnings of $1.46 per share and revenue of $625.72 million. These results would represent year-over-year changes of +2.82% and +9.7%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Doximity. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Doximity boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Doximity is holding a Forward P/E ratio of 41.3. This expresses a premium compared to the average Forward P/E of 28.27 of its industry.

It's also important to note that DOCS currently trades at a PEG ratio of 4.48. 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 Info Systems was holding an average PEG ratio of 3.23 at yesterday's closing price.

The Medical Info Systems industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


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