NEW YORK, May 15, 2025 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Doximity, Inc. (NYSE: DOCS) breached their fiduciary duties to shareholders. According to a federal securities lawsuit, Insiders at Doximity caused the company to misrepresent or fail to disclose material information concerning the Company’s business and operations. Specifically, the Complaint alleges Defendants repeatedly touted the Company’s business pro ...

Core Viewpoint - Doximity (DOCS) is expected to report its fourth-quarter fiscal 2025 results on May 15, with a consensus estimate for revenues at $133.8 million and earnings at 27 cents per share, following a strong performance in the previous quarter where earnings exceeded estimates by 36.36% [1][2]. Group 1: Performance Expectations - The fourth-quarter performance is anticipated to benefit from the strong momentum of Doximity's product portfolio, particularly the growth of new modules and integrated offerings, with point-of-care and formulary modules experiencing over 100% year-over-year growth [3]. - Doximity's multi-module integrated programs have been a significant growth catalyst, allowing clients to launch campaigns more quickly, which is expected to lead to stronger revenue conversion in the fourth quarter compared to previous quarters [4]. - The client portal, utilized by over half of pharmaceutical brand partners, is contributing to commercial traction by providing actionable insights through real-time ROI analytics [5]. Group 2: Usage Trends and Growth Projections - AI-powered tools have seen a 60% sequential increase in usage, with 1.8 million prompts submitted by physicians, indicating growing engagement that supports long-term monetization of Doximity's workflow products [6]. - Despite a strong third quarter, Doximity expects a more modest 13% year-over-year revenue growth for the upcoming quarter, suggesting that early revenue pull-forward from January launches may limit sequential growth [7]. - The end of Doximity's major annual buying cycle in the third quarter may result in a lighter fourth quarter for new bookings, potentially constraining expansion in new products or module sales [8]. Group 3: Market Conditions - The health system segment is stabilizing but continues to face macroeconomic uncertainty, which could limit growth in workflow-based tools like telehealth or scheduling that complement commercial products [9]. - The current earnings ESP for Doximity is 0.00%, indicating that the model does not predict an earnings beat this time around, with a Zacks Rank of 3 (Hold) [10][11].

Core Insights - Doximity, Inc. (NYSE: DOCS) operates an online platform service that has experienced significant growth in user engagement, particularly among medical prescribers [1] - The growth momentum is expected to continue, driven by the pharmaceutical marketing segment, which has been identified as a key area for expansion [1] Company Overview - Doximity provides a platform that connects healthcare professionals, enhancing communication and collaboration within the medical community [1] - The company has seen a notable increase in user engagement, indicating a strong demand for its services among medical prescribers [1] Industry Context - The pharmaceutical marketing segment is anticipated to be a major contributor to Doximity's ongoing growth, highlighting the intersection of technology and healthcare marketing [1]

Company Overview - Coya Therapeutics, Inc. (COYA) is a stock within the Medical sector, which comprises 1000 individual stocks and holds a Zacks Sector Rank of 2, indicating strong performance relative to other sectors [2][3]. Performance Analysis - Coya Therapeutics has shown a year-to-date return of approximately 7.7%, outperforming the Medical sector's average return of -2.9% [4]. - The Zacks Consensus Estimate for COYA's full-year earnings has increased by 7.8% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4]. Industry Context - Coya Therapeutics is part of the Medical - Biomedical and Genetics industry, which includes 508 stocks and currently ranks 76 in the Zacks Industry Rank. This industry has experienced an average loss of 4% year-to-date, indicating that COYA is performing better than its peers [6]. - In comparison, another stock in the Medical sector, Doximity (DOCS), has a year-to-date return of 6.2% and a Zacks Rank of 2, with a consensus EPS estimate increase of 13.2% over the past three months [5][6].

Core Insights - The integration of artificial intelligence (AI) in healthcare is creating new tech-driven innovators, with Tempus AI and Doximity emerging as key players in the AI health tech space [1][2] Tempus AI - Tempus AI focuses on AI-driven precision medicine, particularly in oncology and chronic disease management [2] - The company reported a 35.8% year-over-year revenue growth in Q4 2024, with gross profit rising by 49.7%, indicating improved operational leverage [3] - Tempus AI's Data and Services business achieved a 140% net revenue retention rate and has $940 million in remaining contract value, which management plans to reinvest in technology and talent [3] - Recent acquisitions of Deep 6 AI and Ambry Genetics expanded Tempus AI's clinical footprint to over 750 sites and 30 million patients, enhancing its precision medicine platform [4] - Although Q4 adjusted EBITDA was negative $7.8 million, it showed a $27.3 million year-over-year improvement, with expectations of reaching $5 million in positive adjusted EBITDA [5] - The Zacks Consensus Estimate suggests a 63% improvement in Tempus AI's loss per share for 2025 compared to 2024 [11] Doximity - Doximity reported a 25% year-over-year revenue increase in Q3 fiscal 2025, exceeding guidance by 10%, and raised full-year revenue expectations by $28 million [6] - Adjusted EBITDA reached a record $102 million with a 61% margin, up from 54% the previous year, indicating a scalable business model [6] - User engagement metrics are strong, with over 1 million prescribers on the news feed and a 60% quarter-over-quarter increase in AI usage [7] - Doximity is positioned to outpace the market with expected revenue growth of 13% in Q4 and 19% for the full year [8] - The Zacks Consensus Estimate implies a 37.9% improvement in Doximity's EPS for fiscal 2025 compared to the previous fiscal [12] Stock Performance & Valuation - Over the past three months, Tempus AI's stock has increased by 24.6%, while Doximity's stock has risen by 3.7%. However, Doximity has seen a 99.3% increase over the past year compared to Tempus AI's 0.1% rise [9] - Tempus AI trades at a forward price-to-sales (P/S) ratio of 5.24, below its one-year median of 8.49, while Doximity's forward sales multiple is 15.29, above its median of 14.39 [13] - Doximity has an average brokerage recommendation of 2.20, indicating a "Buy," while Tempus AI has a recommendation of 2.24, indicating a "Hold" [14][17] Investment Outlook - Doximity is considered a more stable and financially sound investment opportunity, with strong profitability, margins, and user engagement [20] - Tempus AI, while rapidly growing, is still in the investment phase and has yet to report positive earnings, making it less attractive for risk-averse investors [21]

In the latest trading session, Doximity (DOCS) closed at $60.55, marking a -1.51% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.53%.The medical social networking site's stock has dropped by 15.67% in the past month, falling short of the Medical sector's loss of 3.24% and the S&P 500's loss of 4.03%.Investors will be eagerly watching for the performance of ...

Company Performance - Doximity (DOCS) closed at $62.99, with a +0.35% change from the previous day's closing price, outperforming the S&P 500 which gained 0.08% [1] - Over the past month, Doximity's shares have decreased by 16.31%, while the Medical sector and S&P 500 have lost 1.03% and 7.33% respectively [1] Upcoming Earnings - Analysts expect Doximity to report an EPS of $0.27, reflecting an 8% increase year-over-year, with projected revenue of $133.76 million, up 13.3% from the same quarter last year [2] - For the annual period, earnings are anticipated to be $1.31 per share and revenue at $562.98 million, indicating increases of +37.89% and +18.42% respectively from the previous year [3] Analyst Sentiment - Recent revisions in analyst estimates suggest optimism regarding Doximity's business and profitability, with a 1.52% increase in the Zacks Consensus EPS estimate over the last 30 days [3][5] - Doximity currently holds a Zacks Rank of 1 (Strong Buy), which has historically provided an average annual return of +25% since 1988 [5] Valuation Metrics - Doximity's Forward P/E ratio stands at 47.99, significantly higher than the industry's Forward P/E of 16.32, indicating a premium valuation [6] - The company's PEG ratio is currently 2.6, compared to the average PEG ratio of 1.43 for Medical Services stocks [6] Industry Context - The Medical Services industry, part of the broader Medical sector, holds a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [7] - Research indicates that industries in the top 50% outperform those in the bottom half by a factor of 2 to 1 [7]

Core Insights - Investors seek stocks that can outperform market expectations ahead of earnings season, focusing on high-quality stocks [1] - Positive earnings surprises are crucial as stocks often decline if they miss or merely meet expectations, regardless of nominal earnings growth [2][3] - A significant earnings surprise can lead to a substantial increase in stock price immediately after the earnings release [4] Stock Selection Criteria - Stocks with a last EPS surprise of at least 10% are more likely to surprise again [7] - An average EPS surprise of over 20% in the last four quarters indicates strong potential for future earnings beats [8] - A Zacks Rank of 1 (Strong Buy) or 2 (Buy) is required for stocks to be considered [8][9] - Positive Earnings ESP is necessary for a stock to achieve an earnings beat [9] - Long-term growth potential is assessed through estimated EPS growth of over 10% per year and an average trading volume exceeding 100,000 [10] Highlighted Stocks - **Doximity (DOCS)**: Zacks Rank 1, average earnings surprise of 26.00% over the past four quarters [11] - **Life Time Group Holdings (LTH)**: Zacks Rank 1, average earnings surprise of 21.58% [12] - **Adtalem Global Education (ATGE)**: Zacks Rank 1, average earnings surprise of 21.58% [13] - **BioMarin Pharmaceutical (BMRN)**: Zacks Rank 2, average earnings surprise of 32.36% [14] - **Iridium Communications (IRDM)**: Zacks Rank 2, average earnings surprise of 35.22% [14]

Core Viewpoint - U.S. stock markets are experiencing significant volatility, primarily due to tariff and trade policies from the Trump administration, alongside signs of a softening economy [1][2] Industry Overview - The health and fitness industry is witnessing growing demand driven by increased global awareness of health issues and the importance of physical fitness, supported by rising lifestyle-related diseases and a focus on preventive healthcare [4] - The industry's growth is bolstered by diverse revenue streams, including subscriptions, product sales, and services, making it attractive for long-term investment [5] - Technological advancements, such as fitness trackers and wearable devices, are creating new growth opportunities and enhancing consumer engagement [5] Company Highlights - **Garmin Ltd. (GRMN)**: - Zacks Rank 1, benefiting from strong momentum in Fitness and Auto OEM segments, with a projected revenue CAGR of 9.3% from fiscal 2025-2027 [11][12] - Expected revenue and earnings growth rates of 9.7% and 8% for the current year, respectively [12] - **Sprouts Farmers Market Inc. (SFM)**: - Zacks Rank 1, focusing on product innovation and e-commerce, with net sales expected to rise between 10.5% and 12.5% in 2025 [13][14] - Expected revenue and earnings growth rates of 12.1% and 21.6% for the current year, respectively [15] - **Doximity Inc. (DOCS)**: - Zacks Rank 1, providing a digital platform for medical professionals, with expected revenue and earnings growth rates of 11.5% and 8.1% for the next year [16][17] - **Life Time Group Holdings Inc. (LTH)**: - Zacks Rank 1, offering a range of health and wellness experiences, with expected revenue and earnings growth rates of 12.9% and 36.8% for the current year [18][20] - **V.F. Corp. (VFC)**: - Zacks Rank 2, showing strong performance in revenues and earnings, with expected growth rates of 2.3% and 46.2% for the next year [21][23]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Doximity (DOCS) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 17.5%, with projected EPS growth of 36% this year, significantly surpassing the industry average of 11% [4] - Doximity's year-over-year cash flow growth is 23.5%, compared to an industry average of -11.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 66.7%, while the industry average is 13.4% [6] Group 2: Earnings and Estimates - Positive trends in earnings estimate revisions are crucial, with Doximity experiencing a 15.9% increase in current-year earnings estimates over the past month [8] - The combination of strong earnings growth, cash flow growth, and positive earnings estimate revisions has positioned Doximity as a Zacks Rank 1 stock and earned it a Growth Score of B [10]