Shares of the online professional medical network Doximity (NYSE:DOCS) closed 9.7% higher on November 10, reflecting a broader market rally following the easing of inflation. Meanwhile, DOCS stock is up about 19% in the pre-market session on November 11, thanks to its solid Q2 performance.
DOCS’ top line increased 29% year-over-year to $102.2 million. While its top line remained strong, its adjusted EPS of $0.17 declined about 11% year-over-year. However, it surpassed the analysts’ estimate of $0.15.
DOCS’ growing subscription revenue, large addressable market, increase in the number of customers with $100K in revenue, and attractive margin position it well to deliver strong growth.
Is DOCS a Good Stock to Buy?
DOCS stock has a Moderate Buy consensus rating on TipRanks based on six Buy, four Hold, and one Sell recommendations. Moreover, analysts’ average price target of $37.89 implies 43.9% upside potential.
While analysts are cautiously optimistic about Doximity stock, hedge funds sold 371.9K shares last quarter. Further, DOCS stock has a negative signal from investors holding portfolios on TipRanks. Overall, it scores three out of 10 on TipRanks’ Smart Scoring system, implying a weak outlook.
