Doximity (DOCS) closed at $71.03 in the latest trading session, marking a +1.1% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Prior to today's trading, shares of the medical social networking site had gained 10.58% outpaced the Medical sector's gain of 7.77% and the S&P 500's gain of 3.44%.
Investors will be eagerly watching for the performance of Doximity in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 26.67% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $157.73 million, indicating a 15.27% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.5 per share and revenue of $632.56 million. These totals would mark changes of +5.63% and +10.9%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Doximity. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Doximity is currently a Zacks Rank #3 (Hold).
In the context of valuation, Doximity is at present trading with a Forward P/E ratio of 46.77. This expresses a premium compared to the average Forward P/E of 33.75 of its industry.
Investors should also note that DOCS has a PEG ratio of 3.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical Info Systems industry had an average PEG ratio of 3.36 as trading concluded yesterday.
The Medical Info Systems industry is part of the Medical sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 28% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Doximity, Inc. (DOCS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
