NYSE:DOCS, a strong growth stock, setting up for a breakout.

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

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:DOCS boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 33.33% over the past year.
• 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!
• DOCS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
• The Revenue is expected to grow by 10.90% on average over the next years. This is quite good.

Analyzing Health Metrics

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

• DOCS has an Altman-Z score of 32.31. This indicates that DOCS is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of DOCS (32.31) is better than 97.22% of its industry peers.
• 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 6.72. This indicates that DOCS is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of DOCS (6.72) is better than 88.89% 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 has a Quick ratio of 6.72. This is amongst the best in the industry. DOCS outperforms 88.89% of its industry peers.

Profitability Analysis 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:

• The Return On Assets of DOCS (14.96%) is better than 97.22% of its industry peers.
• DOCS has a Return On Equity of 17.57%. This is amongst the best in the industry. DOCS outperforms 97.22% of its industry peers.
• The Return On Invested Capital of DOCS (16.49%) is better 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 6.10%.
• The 3 year average ROIC (12.02%) for DOCS is below the current ROIC(16.49%), indicating increased profibility in the last year.
• The Profit Margin of DOCS (32.53%) is better than 97.22% of its industry peers.
• In the last couple of years the Profit Margin of DOCS has grown nicely.
• With an excellent Operating Margin value of 38.12%, 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 Operating Margin of DOCS has grown nicely.
• The Gross Margin of DOCS (89.67%) is better than 97.22% of its industry peers.

How does the Setup look for NYSE:DOCS

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:DOCS this score is currently 9:

Besides having an excellent technical rating, DOCS also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 43.84. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 43.48, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.