Doximity, Inc. (DOCS): A Bull Case Theory

We came across a bullish thesis on Doximity, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on DOCS. Doximity, Inc.'s share was trading at $61.00 as of July 23^rd. DOCS’s trailing and forward P/E were 54.95 and 44.25, respectively according to Yahoo Finance.

Doximity, often described as the “LinkedIn for healthcare,” operates the largest professional network and telehealth platform for healthcare professionals in the U.S., with over 80% of U.S. doctors and half of nurse practitioners and physician assistants as verified members. Its platform offers secure HIPAA-compliant messaging, telehealth, electronic faxing, scheduling, and AI-powered workflow solutions, monetizing through highly targeted pharmaceutical advertising, medical hiring solutions, and subscription-based services.

Shares have declined nearly 30% since February highs, yet the underlying business remains robust, underscored by a strong Q4 earnings update in mid-May featuring record engagement, 17% revenue growth, and EPS of $0.38, up over 50% year-on-year and more than 40% above expectations. Despite this, a cautious FY26 outlook weighed on shares, as management incorporated a potential macro-driven slowdown in healthcare marketing spend, even though current operations show no such impact.

Doximity’s sticky network effects, roughly 90% gross margins, and highly scalable platform continue to support significant cash flow and earnings growth. The company’s dominant market position, coupled with increasing digital adoption by healthcare providers, positions it to capitalize on long-term secular trends. Current valuation reflects an overly conservative outlook, creating an attractive entry point for investors seeking exposure to a category leader with durable competitive advantages and a strong growth profile.

As engagement and monetization deepen across its expanding clinician network, Doximity is expected to sustain high-margin growth, with its recent share price pullback offering a compelling risk/reward opportunity for long-term holders.

Previously, we covered a bullish thesis on Doximity, Inc. (DOCS) by Business Invest in October 2024, which highlighted the company’s dominant physician network, subscription-driven revenues, and strong financial profile. The company’s stock price has appreciated by approximately 40% since our coverage, as the thesis played out. The thesis still stands as telehealth adoption remains robust. Stock Analysis Compilation shares a similar view but emphasizes Q4 earnings and valuation.

Doximity, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held DOCS at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the potential of DOCS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.