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

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.

Deciphering NYSE:DOCS's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:DOCS, the assigned 8 reflects its growth potential:

• DOCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.33%, which is quite impressive.
• DOCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.49% yearly.
• Looking at the last year, DOCS shows a quite strong growth in Revenue. The Revenue has grown by 12.96% in the last year.
• The Revenue has been growing by 40.87% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 12.92% on average over the next years. This is quite good.
• The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.

Unpacking NYSE:DOCS's Health Rating

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 27.23. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of DOCS (27.23) is better 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 6.72 indicates that DOCS has no problem at all paying its short term obligations.
• DOCS's Current ratio of 6.72 is amongst the best of the industry. DOCS outperforms 89.47% of its industry peers.
• DOCS has a Quick Ratio of 6.72. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• DOCS's Quick ratio of 6.72 is amongst the best of the industry. DOCS outperforms 89.47% of its industry peers.

A Closer Look at Profitability for NYSE:DOCS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:DOCS has achieved a 9:

• Looking at the Return On Assets, with a value of 14.96%, DOCS belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
• With an excellent Return On Equity value of 17.57%, DOCS belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
• DOCS has a better Return On Invested Capital (16.49%) than 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 6.02%.
• The last Return On Invested Capital (16.49%) for DOCS is above the 3 year average (12.02%), which is a sign of increasing profitability.
• DOCS has a Profit Margin of 32.53%. This is amongst the best in the industry. DOCS outperforms 97.37% of its industry peers.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• DOCS has a Operating Margin of 38.12%. This is amongst the best in the industry. DOCS outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of DOCS has grown nicely.
• DOCS has a better Gross Margin (89.67%) than 97.37% of its industry peers.

How do we evaluate the setup for NYSE:DOCS?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:DOCS has a 7 as its setup rating, indicating its current consolidation status.

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 36.27. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for DOCS in the last couple of days, which is a good sign.

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

Our latest full fundamental report of DOCS contains the most current fundamental analsysis.

Our latest full technical report of DOCS contains the most current technical analsysis.

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.