In the latest trading session, Doximity (DOCS) closed at $61.09, marking a +1.13% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
The medical social networking site's stock has climbed by 16.31% in the past month, exceeding the Medical sector's gain of 3.5% and the S&P 500's gain of 5.95%.
The investment community will be closely monitoring the performance of Doximity in its forthcoming earnings report. 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. Alongside, our most recent consensus estimate is anticipating revenue of $139.67 million, indicating a 10.26% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.46 per share and a revenue of $625.72 million, demonstrating changes of +2.82% and +9.7%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Doximity. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. 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 41.41 right now. This expresses a premium compared to the average Forward P/E of 32.04 of its industry.
It is also worth noting that DOCS currently has a PEG ratio of 4.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical Info Systems stocks are, on average, holding a PEG ratio of 2.75 based on yesterday's closing prices.
The Medical Info Systems industry is part of the Medical sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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