Is NYSE:DOCS on the Verge of a Major Breakout as a Strong Growth Stock?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if DOXIMITY INC-CLASS A (NYSE:DOCS) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted DOXIMITY INC-CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Unpacking NYSE:DOCS's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:DOCS has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 21.62% over the past year.
• Measured over the past years, DOCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 106.72% on average per year.
• Looking at the last year, DOCS shows a quite strong growth in Revenue. The Revenue has grown by 16.57% in the last year.
• The Revenue has been growing by 53.27% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 13.19% on average over the next years. This is quite good.
• DOCS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.62% yearly.

Evaluating Health: NYSE:DOCS

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:DOCS was assigned a score of 9 for health:

• DOCS has an Altman-Z score of 26.84. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 26.84, DOCS belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
• There is no outstanding debt for DOCS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• DOCS has a Current Ratio of 8.03. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• DOCS has a Current ratio of 8.03. This is amongst the best in the industry. DOCS outperforms 90.00% of its industry peers.
• DOCS has a Quick Ratio of 8.03. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of DOCS (8.03) is better than 90.00% of its industry peers.

A Closer Look at Profitability for NYSE:DOCS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:DOCS was assigned a score of 9 for profitability:

• DOCS has a Return On Assets of 13.76%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• With an excellent Return On Equity value of 15.92%, DOCS belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
• DOCS has a Return On Invested Capital of 15.40%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for DOCS is significantly above the industry average of 4.47%.
• With an excellent Profit Margin value of 29.39%, DOCS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• The Operating Margin of DOCS (34.75%) is better than 100.00% of its industry peers.
• DOCS's Operating Margin has improved in the last couple of years.
• DOCS has a better Gross Margin (88.94%) than 97.50% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:DOCS is 7:

DOCS has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 30.52. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.36, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of DOCS

Check the latest full technical report of DOCS for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.