Doximity is Monday's pick for IBD 50 Growth Stocks To Watch as the physician online network stock tried to establish its footing on a day of harsh selling. Doximity stock is in a base with earnings due out later this week.
Shares trimmed larger morning losses and are holding above their 21-day exponential and 50-day moving averages.
The company operates an online network and mobile app used by doctors for research, to manage schedules and documentation and conduct virtual patient visits.
Doximity boasts its network includes more than 80% of U.S. physicians across all specialties.
The IBD 50 stock ranks No. 1 out of 28 names in the Computer Software/Medical group, which holds the No. 24 spot out of the 197 groups IBD tracks.
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Doximity Stock Recovers From Day's Lows
Shares sank more than 5% Monday morning, finding support at the shorter 21-day line and the longer 10-week moving average. Doximity stock is climbing back and near the day's highs, as it trimmed losses to around 1% midday.
Shares are in an irregular base with a 61.75 buy point, according to MarketSurge pattern recognition.
Doximity stock surged more than 34% in heavy volume after the company topped fiscal second-quarter adjusted earnings and sales estimates on Nov. 7. It provided a fiscal third-quarter sales outlook that topped forecasts and raised its fiscal 2025 revenue forecast, also above views.
Shares sold off a few days later to form the new base and have been volatile within the 12-week long base.
But its 1.5 up/down volume ratio shows positive demand for the stock over the last 50 days, a positive sign.
Profit Growth Looks To Temper
Fiscal second-quarter adjusted earnings grew 36% on 20% revenue growth. Fiscal third-quarter forecasts call for profit growth to slide to 16% with sales rising 13%.
Both earnings and revenue growth are projected to slow over the following three quarters. Fiscal 2025 profit estimates show a 21% increase then ease to 10% in fiscal 2026.
Doximity is expected to report its fiscal third-quarter results Thursday after the market close.
Mutual funds own 67% of shares with 667 owning shares in December, up from 638 in September.
Doximity stock holds best-possible score of 99 in its IBD Composite and Earnings Per Share Ratings.
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