In the latest trading session, Doximity (DOCS) closed at $61.55, marking a +2.24% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.
Prior to today's trading, shares of the medical social networking site had gained 7.65% outpaced the Medical sector's loss of 1.34% and the S&P 500's gain of 3.97%.
The investment community will be closely monitoring the performance of Doximity in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.31, marking a 10.71% rise compared to the same quarter of the previous 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 annual period, the Zacks Consensus Estimates anticipate earnings of $1.46 per share and a revenue of $625.72 million, signifying shifts of +2.82% and +9.7%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Doximity. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% downward. Doximity presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Doximity is currently being traded at a Forward P/E ratio of 41.26. For comparison, its industry has an average Forward P/E of 28.13, which means Doximity is trading at a premium to the group.
It's also important to note that DOCS currently trades at a PEG ratio of 4.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Medical Info Systems industry held an average PEG ratio of 2.64.
