Doximity (DOCS) closed at $56.65 in the latest trading session, marking a +0.64% move from the prior day. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 1.26%.

Shares of the medical social networking site witnessed a loss of 7.04% over the previous month, beating the performance of the Medical sector with its loss of 7.7% and underperforming the S&P 500's loss of 4.77%.

Investors will be eagerly watching for the performance of Doximity in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 15, 2025. The company is expected to report EPS of $0.27, up 8% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $133.76 million, showing a 13.3% escalation compared to the year-ago quarter.

Investors should also note any recent changes to analyst estimates for Doximity. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Doximity holds a Zacks Rank of #2 (Buy).

With respect to valuation, Doximity is currently being traded at a Forward P/E ratio of 39.95. This represents a premium compared to its industry's average Forward P/E of 16.23.

It is also worth noting that DOCS currently has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical Services industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 Report

This article originally published on Zacks Investment Research (zacks.com).

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