Doximity is Thursday's pick for IBD 50 Stocks To Watch as the telehealth technology provider is holding above a critical level with earnings due next week.
Morgan Stanley on Wednesday raised its price target to 33 from 26 but kept an underweight rating. The consensus target price among analysts who cover the company has gone up from 29.14 in July to 41.39 currently, according to FactSet.
The medical tech company boasts that 80% of U.S. doctors are in its network. Its tools and apps allow medical professionals to conduct patient telehealth video calls, securely collaborate on patient treatment and receive faxes on the go.
Doximity ranks No. 1 out of 27 stocks in the Computer-Software Medical industry group, which holds the No. 145 spot out of 197 IBD industry groups.
Doximity Stock Holds Critical level
The telehealth stock dropped around 1.2% Thursday at midday in light volume after three straight days of modest gains. The stock is below its 21-day exponential moving average but finding support at its 50-day moving average.
Doximity stock is extended from a cup-with-handle base breakout, according to MarketSurge pattern recognition. With the medical tech stock finding support at the 10-week moving average after a pullback, it sets up a buy point around 41.
Its relative strength line is ticking up after a drop from October highs. Shares have climbed around 47% so far this year, but are far from its all-time high of 107.79 reached in September 2021 during the Covid-19 pandemic.
Its 1.7 up/down volume ratio indicates strong demand for the stock over the last 50 days.
Telehealth Tech Provider's Earnings
Doximity beat fiscal first-quarter adjusted profit and sales forecasts on Aug. 8. Earnings topped estimates by 25% according to IBD Leaderboard. Its profit grew 47% on a 17% sales increase. It also raised its fiscal 2025 revenue guidance.
FactSet fiscal Q2 earnings estimates call for a 16% rise before dropping 4% to 6% over the following three quarters. Similarly, Q2 revenue is expected to expand 12% then taper to a 4%-7% range over the same time period. Doximity reports its fiscal second-quarter results on Nov. 7.
Fiscal 2025 analyst projections indicate 11% EPS growth then 5% in fiscal 2026.
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