Doximity (DOCS) closed the most recent trading day at $65.61, moving -9.59% from the previous trading session. This move lagged the S&P 500's daily loss of 2.71%. On the other hand, the Dow registered a loss of 1.9%, and the technology-centric Nasdaq decreased by 3.56%.
The stock of medical social networking site has risen by 3.29% in the past month, leading the Medical sector's gain of 2.6% and undershooting the S&P 500's gain of 3.5%.
Analysts and investors alike will be keeping a close eye on the performance of Doximity in its upcoming earnings disclosure. On that day, Doximity is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 26.67%. At the same time, our most recent consensus estimate is projecting a revenue of $157.73 million, reflecting a 15.27% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $632.56 million. These totals would mark changes of +6.34% and +10.9%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Doximity. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.72% lower. Doximity presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Doximity currently has a Forward P/E ratio of 48.18. This expresses a premium compared to the average Forward P/E of 41.88 of its industry.
It is also worth noting that DOCS currently has a PEG ratio of 3.5. 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 industry had an average PEG ratio of 3.32 as trading concluded yesterday.
The Medical Info Systems industry is part of the Medical sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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.
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Doximity, Inc. (DOCS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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