This story originally appeared on Zacks
Doximity (DOCS) closed at $50.08 in the latest trading session, marking a +1.54% move from the prior day. This move outpaced the S&P 500’s daily loss of 1.03%. Meanwhile, the Dow lost 1.48%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Prior to today’s trading, shares of the medical social networking site had lost 24.67% over the past month. This has lagged the Medical sector’s loss of 0.71% and the S&P 500’s loss of 0.62% in that time.
Investors will be hoping for strength from Doximity as it approaches its next earnings release.
Any recent changes to analyst estimates for Doximity should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Doximity is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Doximity currently has a Forward P/E ratio of 86.15. This represents a premium compared to its industry’s average Forward P/E of 29.15.
Meanwhile, DOCS’s PEG ratio is currently 10.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Medical Services industry currently had an average PEG ratio of 1.53 as of yesterday’s close.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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