NYSE:DOCS: a strong growth stock preparing for the next leg up?.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether DOXIMITY INC-CLASS A (NYSE:DOCS) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but DOXIMITY INC-CLASS A has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Understanding NYSE:DOCS's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:DOCS has earned a 8 for growth:

• DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.14%, which is quite impressive.
• Measured over the past years, DOCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.49% on average per year.
• Looking at the last year, DOCS shows a quite strong growth in Revenue. The Revenue has grown by 13.44% in the last year.
• The Revenue has been growing by 40.87% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, DOCS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
• Based on estimates for the next years, DOCS will show a quite strong growth in Revenue. The Revenue will grow by 10.90% on average per year.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DOCS has received a 9 out of 10:

• DOCS has an Altman-Z score of 19.91. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• DOCS has a better Altman-Z score (19.91) than 97.37% of its industry peers.
• DOCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 6.20, DOCS belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
• A Quick Ratio of 6.20 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS's Quick ratio of 6.20 is amongst the best of the industry. DOCS outperforms 89.47% of its industry peers.

Exploring NYSE:DOCS's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DOCS has earned a 9 out of 10:

• DOCS has a Return On Assets of 13.67%. This is amongst the best in the industry. DOCS outperforms 97.37% of its industry peers.
• DOCS has a Return On Equity of 16.37%. This is amongst the best in the industry. DOCS outperforms 97.37% of its industry peers.
• DOCS has a Return On Invested Capital of 15.15%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for DOCS is significantly above the industry average of 5.59%.
• The 3 year average ROIC (12.02%) for DOCS is below the current ROIC(15.15%), indicating increased profibility in the last year.
• The Profit Margin of DOCS (31.04%) is better than 97.37% of its industry peers.
• DOCS's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 36.14%, DOCS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of DOCS has grown nicely.
• With an excellent Gross Margin value of 89.35%, DOCS belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:DOCS currently has a 8 as setup rating:

Although the technical rating is only medium, DOCS does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 29.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.00, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.