DOCS huge base breakout with very strong momentum NYSE:DOCS
DOCS huge base breakout with very strong momentum
Good volumes too.
D2OC34 trade ideas
Breaking: Doximity Stock Jumps 37% On Upbeat Annual OutlookDoximity Inc. (NASDAQ: DOCS), the leading digital platform for U.S. medical professionals, has made headlines with its stock skyrocketing 37% following a stellar earnings report and an upbeat annual outlook. The company’s third-quarter fiscal 2025 results not only surpassed analyst expectations but also showcased robust growth in key areas, including AI tools and user engagement.
Strong Earnings and Upbeat Guidance
Doximity’s latest earnings report has solidified its position as a growth powerhouse in the healthcare technology sector. Here are the key highlights:
1. Record Revenue and Earnings Growth
- Revenue: $168.6 million, up 25% year-over-year, beating consensus estimates of $152.82 million.
- Earnings Per Share (EPS): Adjusted EPS of $0.45, a significant jump from $0.29 a year ago and well above the $0.34 consensus.
- Net Income: $75.2 million, up 57% year-over-year, reflecting strong profitability.
2. AI Tools and User Engagement Driving Growth
Doximity’s AI-powered tools saw a 60% quarter-over-quarter increase in usage, while its newsfeed surpassed one million unique providers. This demonstrates the platform’s ability to innovate and retain user engagement, which is critical for long-term growth.
3. Raised Guidance for Fiscal 2025
The company raised its revenue guidance to $564.6 million—$565.6 million, up from the previous range of $535 million—$540 million. Adjusted EBITDA guidance was also increased to $306.6 million—$307.6 million, signaling confidence in continued profitability and operational efficiency.
4. Analyst Optimism
Analysts have responded positively to Doximity’s performance:
- Needham: Raised price target from $65 to $82, maintaining a Buy rating.
- Wells Fargo: Increased price target from $43 to $55, maintaining an Equal-Weight rating.
- Raymond James: Raised price target from $65 to $83, reiterating an Outperform rating.
These upward revisions reflect growing confidence in Doximity’s ability to sustain its momentum.
Technical Analysis:
From a technical perspective, NYSE:DOCS is exhibiting a classic gap-up pattern, with shares up 35.68% at the time of writing. Here’s what the charts are telling us:
1. Gap-Up Pattern
The gap-up indicates a surge in buying interest following the earnings announcement. While this is a bullish signal, gaps are often filled in the long run, meaning the stock could retrace some of its gains before continuing its upward trajectory.
2. The Relative Strength Index (RSI) is currently at 86, well above the overbought threshold of 70. This suggests that the stock may be due for a short-term pullback or consolidation as traders take profits.
3. Despite overbought conditions, the stock’s momentum remains strong. Key support levels to watch include the pre-gap price zone around $61. A pullback to this area could present a buying opportunity for investors looking to enter at a lower price.
Why Doximity Stands Out
Doximity’s success is rooted in its ability to address critical needs in the healthcare industry. Its digital platform streamlines communication and workflow for medical professionals, while its AI tools enhance efficiency and decision-making. With over 610,000 unique providers using its clinical workflow tools, Doximity has established itself as an indispensable resource for healthcare professionals.
A Strong Buy with Caution
Doximity’s impressive earnings report and raised guidance have rightfully propelled its stock to new heights. From a fundamental perspective, the company’s growth trajectory, driven by AI innovation and user engagement, is compelling. Technically, while the stock is overbought in the short term, the long-term outlook remains bullish.
Doximity Is Preparing To Report Another Strong QuarterKey arguments supporting the idea
• Doximity is a leader in the rapidly growing telemedicine industry.
• The results for Q3 FY2025 may once again impress investors due to the use
of AI tools.
• Maintaining high growth rates of financial indicators and a strong balance
sheet in the medium term.
Doximity is the owner of the largest medical social network in the U.S, bearing the
same name. Founded in 2010, the company has become something like "LinkedIn
for doctors," providing the medical community with tools for professional
communication, telemedicine, exchanging clinical information, and finding career
opportunities. The platform covers over 90% of U.S. doctors, offering access to
more than 100,000 current job openings for medical professionals.
Investment Thesis
Telemedicine is one of the fastest-growing industries , with an annual growth rate
of 24% expected from 2022 to 2032, according to Grand View Research. Unlike
other public companies in the telemedicine field, such as Teladoc (TDOC), GoodRx
(GDRX), and Amwell (AMWL), Doximity is the only profitable company. One of
Doximity's key advantages is its ability to generate revenue not only from
telemedicine services but also from targeted advertising and marketing solutions
aimed at medical professionals, which allows the company to effectively compete
in the market. According to the Doximity’s investor presentation, company
estimates the total market for telemedicine, pharmaceutical marketing, and
healthcare recruitment at $18.5 billion, highlighting significant opportunities for
growth and expansion.
The results for Q3 FY2025 may once again impress investors with revenue and
EPS growth driven by AI solutions. The number of major clients generating over
$500k annually increased from 92 to 103 as of Q2 FY2025, and these clients
account for approximately 83% of the company's total revenue. The company has
a good chance of repeating the dynamics of previous quarters due to AI solutions
that increase customer engagement and improve targeted advertising. The
company reported that over one million requests were made to Doximity GPT in
Q2 FY2025. The increase in user engagement, supported by tools like Newsfeed
and Client Portal, significantly improves user loyalty and increases the value of
advertising opportunities for pharmaceutical companies. Today over 600,000
doctors actively use Doximity tools for their daily tasks. For Q3 FY2025, the
company expects 13% YoY revenue growth and 15% YoY EPS growth.
Maintaining high growth rates of financial indicators and a strong balance
sheet. Over the past 5 years, the revenue CAGR has been 32%, and net income has
increased more than 14-fold. The company has a strong balance sheet with $800
million in cash and debt of $13 million, with a current ratio of 7.2. Additionally, by
the end of Q2 FY2025, the gross margin, adjusted EBITDA, and net margin reached
record levels, at 90%, 53%, and 32%, respectively. According to the FactSet
consensus, double-digit growth rates are expected to continue over the next three
years, with forecasted revenue growth of 13.6% and adjusted EPS growth of 21.3%
in FY2025.
We maintain a Buy rating on DOCS stock with a price target of $66. A stop-loss
order is recommended at $45.
New Setup: DOCSDOCS : I have a swing trade setup signal. I'm looking to enter long if the stock can manage to CLOSE above the last candle high(BUY). If triggered, I will then place a stop-loss below (SL) and a price target above it(TP-50%,move SL to breakeven), then using the close below the 10SMA as my trailing stop loss. **Note: The above setups will remain valid until the stock CLOSES BELOW my set stop-loss level(SL).
Betting on $DOCS: A Technical Analysis Forecasting 8% GrowthNYSE:DOCS shows strong performance with a Relative Strength (RS) rating of 98. The On-Balance Volume (OBV) has been rising since October 1st, indicating ongoing buying interest. The stock is forming a bullish base along the trend line, supported by the 10-day and 20-day Exponential Moving Averages (EMAs). I predict an 8% rise in price and have set a stop loss at 3.4% to limit risk. This setup suggests a solid opportunity for growth. Let's proceed with this trade and assess the outcome
New Setup: DOCSDOCS: I have a green setup signal(dot Indictor). It has an excellent risk-to-reward ratio(RR:). I'm looking to enter long near the close of the day if the stock can manage to CLOSE above the last candle highs(white line). If triggered, I will then place a stop-loss below(SL) and a price target above it(TP).
********
Note: The above setups will remain valid until the stock CLOSES BELOW my set stop-loss level.
DOCS Doximity Options Ahead of EarningsIf you haven`t bought DOCS before the previous earnings:
Then analyzing the options chain and the chart patterns of DOCS Doximity prior to the earnings report this week,
I would consider purchasing the 25usd strike price Calls with
an expiration date of 2024-6-21,
for a premium of approximately $1.15.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Doximity Surges 18% on Earnings Beat and Strong OutlookDoximity shares ( NYSE:DOCS ) surged 18% after the company beat quarterly earnings forecasts, provided a better-than-expected current-quarter outlook, and unveiled a share buyback program. The provider of curated medical news and telehealth tools reported adjusted earnings of 25 cents per share for the fiscal fourth quarter ending March 31, comfortably topping Wall Street estimates of 20 cents a share. Revenue in the period of $118.1 million improved 6% from a year earlier and beat analysts' expectations of $116.4 million. Subscription revenue in the quarter increased to $112.7 million, up 9% from $103.2 million in last year's corresponding period, helping to boost top-line growth.
Doximity ( NYSE:DOCS ) expects current-quarter net sales to range between $119.5 million and $120.5 million, with the lower end surpassing forecasts of $119.2 million. For the full year, it projects revenue of $506 million to $518 million, below the $520.8 million Street consensus. The San Francisco-based company said it had been incorporating artificial intelligence (AI) and automation into its workflow tools as it looks to sign on more healthcare professionals.
Doximity ( NYSE:DOCS ) also unveiled a stock buyback program, announcing that it had authorized the purchase of up to $500 million of its Class A common stock. Since early March, the Doximity ( NYSE:DOCS ) share price has traded within a falling wedge, a bullish chart pattern suggesting potential upward price movement. Investors should watch the $28 level, an area where the stock may find overhead resistance from a horizontal line connecting a series of price actions over the past 13 months.
5/16/24 - $docs - not convinced into print, careful fam5/16/24 - vrockstar - NYSE:DOCS - looks modestly interesting b/c the bar looks low-ish for a beat and it's a few days to cover. however, the prior Q's MSD+ revenue beat was sold down hard and without relief until today and the stock divided by SPY (the comp i benchmark everything by) is a bleed forever. it's not like valuation is a steal at 15% pa growth 7.5x sales, 25x PE and 4-5% fcf yield. options market also have a pretty substantial interest for the 6/21 contracts at 20P which i ignored (to my own peril in DLO and were proved correct). i'd be nervous that a beat is nothing that can rip/ re-rate higher for a reasonable multi-day swing with nice 10+% upside. and forget a miss - you're look at 10% minimally, i'd guess in this tape and given you'd be breaking ATL at that point, it's an exercise in catching a falling knife which is a miserable experience, always and usually best to find a bottoming pattern even if you don't nail the bottom - nobody does.
i'll be watching this from the sidelines and not all that interested if/unless we get to mid teens on a macro-related sell off. gl to the holders. tough one to play into this print.
cvna has potential to run or to continue the same patternGet ready for another lackluster of action from Carvana stock. the 200 is still settled, 100 moving in the northward direction, but we do see the similarities of the channel on the daily which continues to go up and down like a yo-yo
DOCS, Uptrend based on AlgoSignal StrategyThe current point exhibits promising upward signals according to my algorithmic system, meeting various criteria. These include rising trading volume, an upward trend indicated by prices above EMA20 and EMA50, and the closing price surpassing VWAP. As a result, the present conditions suggest a potential upward trend.
Doximity (NYSE:DOCS) jumped 29%
Shares of healthcare professional network Doximity (NYSE:DOCS) jumped 29% in the morning session after the company reported a classic "beat and raise" quarter that investors love. Third quarter results beat Wall Street's expectations for revenue and handily beat expectations for Adjusted EBITDA and EPS. Additionally, it was good to see Doximity's optimistic revenue and adjusted EBITDA guidance for the next quarter, which exceeded analysts' expectations. Lastly, revenue and adjusted EBITDA guidance for the full year were both raised from the previous outlook given last quarter. Overall, we think this was a strong quarter with no major flaws that should satisfy shareholders.
What is the market telling us:
Doximity's shares are very volatile and over the last year have had 15 moves greater than 5%. But moves this big are very rare even for Doximity and that is indicating to us that this news had a significant impact on the market's perception of the business.
The company reported first quarter results with revenue guidance for the next quarter coming in below analysts' expectations and indicating a pretty significant slowdown in growth. The full year guidance also missed and was lowered, which isn't a good sign for a company that bulls argue is still very early in penetrating a large and growing addressable market.
Doximity is down 30.1% since the beginning of the year, and at $22.91 per share it is trading 42.2% below its 52-week high of $39.66 from February 2023. Investors who bought $1,000 worth of Doximity's shares at the IPO in June 2021 would now be looking at an investment worth $433.40.
Technical Analysis
DOCS is trading near the bottom of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This means that there is no clear trend or momentum in the price movement of Doximity, and it is likely to fluctuate within a range.
DOCS - Recovery StructureThis structure is actually very similar to what we are seeing on the TOTAL2 crypto market cap chart.
A reversal structure in the form of an inverted head and shoulders pattern
Very nice
WATCH $DOCSBullish
- Broke existing trend
- Building base
- Positive FCF
- Positive Income
- Funds accumulating
Entry idea
- For members
Stop loss depending on entry and risk appetite. But always set meaningful stops.
“It never get easier, you just get better”
Cheers and happy trading!
DOCS AnalysisPrice is on an uptrend. Price has recently mitigated the bearish POI at 46.94, and taken liquidity at 39.09. There is also sell-side liquidity being built since the last earning call. The price grabbed liquidity at 39.09 and is unable to produce a sustained uptrend to breaking market structure to the upside. The volume on 3 August 2022 is also increasing. I'm expecting that the price wants to go lower to grab more liquidity before it goes higher.
DOCS Disappointing GuidanceDoximity, Inc. (DOCS) expects revenue between $88.6 million and $89.6 million for the next Q vs $96.8 million expected.
analyst Sandy Draper: “We see it as a buying opportunity for investors." “We are lowering our PT to $52 from $70 to reflect a lower multiple as growth stocks continue to see multiple compression.”
The P/E ratio is decent, 56.01.
I expect a reversal to $49 by the end of the year.
Looking forward to read your opinion about it.
Doximity | DOCS | Needs to Find BottomDoximity ( NYSE:DOCS ). The algos may have this one set to fall for a while, unfortunately. Fairly new to the market, it made a new low in January 2022 and may need more time to find the actual bottom. The support and resistance lines/angles all indicate a falling wedge down to $10. The thick white lines on the chart show major support/resistance areas while the blue dotted lines highlight the possible max formation of the wedge. While it may not drop quickly, what I see is the beginnings of a bleeding stock. Confirmation of a further decline will be if it breaks $48 in the near-term.
P/E 103.80x and insiders continue to slowly trim shares.
docsso the stock is going up because the market has been 4/5 green consecutively. if it breaks my channel of 53.40 we are in an uptrend, with targets standing tall at 60 and above. If this breaks, the stop is at 1% of this exit which is 0.53, so my stop for the bull breakout is $52.86 as I see it heading towards $60.
docsI have a channel if it breaks 53.4 it can go to 60 and beyond, if it fails 53.40 then it could continue to channel and go to $45 and below, depending on market conditions. Entry was shy of 48 targets as short is 44.85 +$3.02 otherwise I pull out 1% from a stop which is $52.86, and take a loss of $4.99 Risk outweighs the reward.
1/3/2022 NYSE (DOCS)Buy (Entry Price) above the black line and exit (Stop Loss) below the red line. Can take profit at the suggested Target Price.
$DOCS puts under 55Got a nice bum post ER but left a big gap under. Any weakness in market and this gap will be filled.
Stocks $DOCS Risky Entry here look for entry around $69-70
Rejecting Ascending Triangle will need to hold above $69 to resume bullish
SL:$72
TP 1 $68
TP 2 $65
TP 3 $60
TP 4 Open
