Wednesday's IBD 50 Stocks To Watch pick is health care software play Doximity, which is approaching an additional entry after a 50% surge in recent weeks. Doximity stock rose 0.5% midday Wednesday, within striking distance of the 37.55 buy point.
San Francisco-based Doximity operates a cloud-based digital platform for medical professionals in the U.S. It enables its members to collaborate with colleagues, stay informed with the latest medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork and conduct virtual patient visits.
On Aug. 9, Doximity stock surged nearly 39% after the company announced better-than-expected fiscal Q1 results and issued fiscal Q2 and fiscal year revenue guidance above estimates.
"We were pleased to deliver strong profits and record engagement last quarter, as we beat on both our top and bottom lines," said CEO Jeff Tangney in the earnings news release. "Last quarter, a record 590,000 unique providers used our AI, telehealth, messaging, and scheduling workflow tools to save time and better serve their patients."
The company's earnings for the fiscal year ending in March are expected to rise 11%, according to IBD MarketSurge, with growth of 6% projected for the next fiscal year.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Doximity Eyes Buy Point
Doximity stock has advanced as much as 50% from its lows in early August. Most of that advance came from a breakaway gap above a 30.50 cup-with-handle entry, according to MarketSurge chart analysis.
Despite a deeper-than-normal handle, the formation was an early-stage base, which offers more potential upside than a later-stage pattern.
Now, shares have traced a three-weeks-tight pattern that offers an entry at 37.55. In these patterns, a market leader holds firm near a certain price level for at least three straight weeks, giving investors a chance to add shares.
Another bullish factor is the stock's relative strength line, which notched a new high this week. That's a positive signal of stock market outperformance.
With outstanding price performance in recent weeks, Doximity stock shows a 94 out of 99 IBD Composite Rating, according to IBD Stock Checkup.
With market risk high, however, investors should be looking to carefully raise their market exposure. And Doximity stock is among the best ideas to consider, especially if it climbs to new highs.
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Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Meta Platforms | 542.81 | Cup base | |
| Taiwan Semiconductor | 175.45 | Cup with handle | |
| Ryan Specialty | 69.03 | Flat base |
Source: IBD Data as of Sept. 11
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
