Core Viewpoint - Doximity (DOCS) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, with the consensus of EPS estimates from analysts being a key component [1][2]. - An increase in earnings estimates is strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4]. Business Improvement Indicators - The upgrade in Doximity's rating suggests an improvement in the company's underlying business, which is expected to lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending March 2026, Doximity is projected to earn $1.56 per share, with a 2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of stocks covered by Zacks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Insights - Telehealth services offer convenience and potential savings for both physicians and patients, yet companies like Teladoc Health and Doximity have struggled in recent years [1][2] Group 1: Telehealth Market Dynamics - Medicare's reimbursement for telehealth services is set to expire on January 31, limiting coverage to specific cases, which is expected to reduce demand for telehealth [5][8] - The early pandemic years saw increased accessibility to telemedicine, but the upcoming changes in Medicare policy may reverse some of these gains [4] Group 2: Company Performance Outlook - Teladoc is anticipated to experience continued weak performance in 2026, with slow revenue growth and ongoing profitability challenges, exacerbated by the Medicare changes [6][7] - Doximity, while less affected by Medicare changes due to its broader service offerings, still faces a dim outlook in the current market environment [8][10] - Teladoc's international expansion shows some promise, but the company faces significant challenges that may hinder its recovery [9]

Core Insights - The U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution related to economic growth and valuations [1] - The Meridian Growth Fund reported a quarterly return of -0.39%, underperforming the Russell 2500 Growth Index which returned 0.33% [1] - The fund is focusing on high-quality businesses with strong competitive advantages and sustainable earnings growth as it approaches 2026 [1] Market Performance - Large-cap stocks rose 17.4% for the year and 2.4% in the quarter, while small-cap stocks gained 12.8% for the year and 2.2% in the quarter [1] - Value stocks outperformed growth stocks, returning 3.3% compared to 1.2% for the quarter [1] Company Focus: Doximity, Inc. - Doximity, Inc. is highlighted as a leading detractor for the Meridian Growth Fund, with shares trading between $39.50 and $85.21 over the past 52 weeks [2] - As of January 26, 2026, Doximity's stock closed at $40.40, reflecting a one-month return of -9.38% and a three-month decline of 39.23% [2] - Doximity operates a cloud-based platform for medical professionals, reaching approximately 80% of U.S. physicians, and serves as an advertising channel for pharmaceutical companies [3] - Despite solid quarterly results, Doximity's shares declined due to guidance that fell short of consensus expectations, indicating moderated revenue growth and uncertainty in healthcare spending [3]

Group 1: Voya MidCap Opportunities Fund Overview - Voya MidCap Opportunities Fund's Q4 2025 investor letter highlights solid market gains but relative underperformance against the Russell Mid Cap Growth Index due to unfavorable stock selection [1] - The fund's managers maintain a cautiously constructive outlook, noting geopolitical risks and policy uncertainty, but see potential in broadening market leadership, sustained corporate capital expenditure, and AI-led innovation [1] - The fund's top five holdings are mentioned as key picks for 2025, indicating a focus on active and flexible positioning [1] Group 2: Doximity, Inc. Performance - Doximity, Inc. operates a digital professional network for U.S. healthcare providers, generating revenue through various tools and solutions, with a one-month return of -7.21% and a market capitalization of approximately $7.633 billion [2] - Doximity's stock has traded between $39.95 to $85.21 over the last 52 weeks, closing at around $40.80 on January 22, 2026 [2] - The Voya MidCap Opportunities Fund identified Doximity as a key detractor from performance due to an overweight position, with stock decline following cautious earnings guidance amid healthcare policy changes [3] Group 3: Hedge Fund Interest in Doximity - Doximity is not among the 30 most popular stocks among hedge funds, with 44 hedge fund portfolios holding the stock at the end of Q3, up from 41 in the previous quarter [4] - The investment community acknowledges the risks and potential of Doximity, but some believe other AI stocks may offer better short-term returns [4]

Industry Overview - The Medical Info Systems industry is rapidly expanding due to innovations in healthcare resource management, patient data handling, and integrated digital care delivery [1] - Companies in this industry develop and market healthcare information systems, providing software and hardware solutions for secure access to real-time clinical, administrative, and financial data [4] Market Growth and Trends - The use of artificial intelligence (AI) in healthcare is projected to grow at a CAGR of 38.6% from 2025 to 2030, driven by demand for enhanced diagnostic accuracy and personalized medicine [2] - The global Smart Healthcare Products market was valued at $280.48 billion in 2024 and is expected to reach $796.36 billion by 2032, growing at a CAGR of 15.37% [5] - Remote patient monitoring and telehealth services are experiencing significant growth due to increased awareness of continuous patient monitoring devices [5] Key Players - Doximity (DOCS) is a market leader in physician engagement, covering over 80% of U.S. doctors, with a subscription-based revenue model and a total addressable market of $18.55 billion [17] - 10x Genomics (TXG) develops products for analyzing biological systems, with a Zacks Consensus Estimate indicating a 72.4% improvement in earnings from 2024 to 2025 [21][22] - Omnicell (OMCL) focuses on medication management solutions and is expected to achieve a revenue CAGR of 2.8% from 2025 to 2027 [25] Financial Performance - The Medical Info Systems industry has underperformed the S&P 500 and the Zacks Medical sector, losing 7.7% over the past year compared to the sector's growth of 24.7% [11] - The industry is currently trading at a forward price-to-sales (P/S) ratio of 4.65X, lower than the S&P 500's 5.65X and the sector's 2.35X [14] Cybersecurity Concerns - As healthcare systems become more digital, cybersecurity has emerged as a critical concern, with rising instances of ransomware and cyberattacks targeting healthcare organizations [7][8]

Upgrades Summary - Melius Research upgraded Wingstop (WING) to Buy from Hold with a price target of $350, increased from $275, citing an attractive entry point after recent stock weakness [2] - Seaport Research upgraded Intel (INTC) to Buy from Neutral with a price target of $65, indicating that new Panther Lakes products are expected to drive near-term improvements and market share recovery in enterprise and consumer products [2] - HSBC also upgraded Intel to Hold from Reduce with a price target of $50, up from $26 [2] - Wolfe Research upgraded Allegiant Travel (ALGT) to Outperform from Peer Perform with a price target of $108, following its acquisition of Sun Country Airlines (SNCY), described as "transformational" [2] - Wells Fargo upgraded Doximity (DOCS) to Overweight from Equal Weight with a price target of $55, down from $65, suggesting that investor concerns are overblown based on survey results indicating sufficient differentiation [2] - Morgan Stanley upgraded Brinker (EAT) to Overweight from Equal Weight with a price target of $200, increased from $160, highlighting attractive long-term growth in fast casual and beverage sectors [2] - Morgan Stanley also upgraded Shake Shack (SHAK) to Overweight from Equal Weight with a price target of $125, up from $115 [2]

Core Viewpoint - Doximity, Inc. (NYSE:DOCS) is recognized as a promising growth stock, with analysts highlighting its potential amidst increasing competition in healthcare AI tools, particularly following OpenAI's recent entry into the sector [1]. Group 1: Analyst Ratings and Price Targets - Raymond James reaffirmed a 'Strong Buy' rating on Doximity, Inc. with a price target of $65, indicating confidence in the company's growth potential [1]. - The firm maintained a 'Strong Buy' rating on December 29, 2025, after a meeting with Co-founder and CEO Jeff Tangney, suggesting ongoing positive sentiment towards the company [2]. Group 2: Company Performance and Market Position - Analysts believe that Doximity's engagement is set to accelerate, providing a "durable" revenue growth driver over time, which may not be fully recognized by investors [3]. - Doximity's EBITDA margins are expected to expand further from the current 55%, indicating strong financial health and operational efficiency [3]. - The company's "physicians-first ethos" is viewed as a structural moat that differentiates it from competitors, suggesting a competitive advantage in the market [3]. Group 3: Company Overview - Doximity, Inc. is a California-based digital platform for medical professionals, founded in 2010, serving a diverse customer base including physicians, medical students, pharmaceutical manufacturers, and healthcare systems [4].

Company Performance - Doximity (DOCS) closed at $41.36, down 5.7% from the previous trading session, underperforming the S&P 500's loss of 0.19% [1] - Over the past month, Doximity shares have decreased by 1.77%, while the Medical sector gained 0.48% and the S&P 500 increased by 2.26% [1] Upcoming Earnings - Doximity is expected to report an EPS of $0.44, a decrease of 2.22% compared to the same quarter last year [2] - Revenue is projected at $181.03 million, reflecting a 7.37% increase from the equivalent quarter last year [2] Annual Forecast - Zacks Consensus Estimates forecast earnings of $1.56 per share and revenue of $645.29 million for the year, indicating increases of 9.86% and 13.13% respectively compared to the previous year [3] - Changes in analyst estimates for Doximity are important as they reflect short-term business trends [3] Analyst Ratings - The Zacks Rank system rates Doximity as 2 (Buy), with a history of outperforming the market, particularly 1 stocks returning an average annual gain of 25% since 1988 [5] - The Zacks Consensus EPS estimate has increased by 0.78% in the past month [5] Valuation Metrics - Doximity has a Forward P/E ratio of 28.04, which is a discount compared to the industry average Forward P/E of 29.42 [6] - The PEG ratio for Doximity is currently 1.48, while the Medical Info Systems industry has an average PEG ratio of 2.33 [6] Industry Context - The Medical Info Systems industry is ranked 160 in the Zacks Industry Rank, placing it in the bottom 35% of over 250 industries [7] - Top-rated industries (top 50%) tend to outperform the bottom half by a factor of 2 to 1 [7]

Industry Overview - The health and fitness industry has transformed into a significant global movement driven by a shift towards healthier living, with consumers seeking balanced nutrition and structured exercise routines [2] - Demand is increasing across gyms, supplements, and customized wellness programs, aided by technology that enhances personal health management through wearables and virtual coaching [2] - The global health and wellness market is projected to reach $11 trillion by 2034, growing at a 5.4% CAGR from 2025, driven by preventive care initiatives and workplace wellness programs [4] Key Players - Apple is enhancing its health and fitness offerings through the Apple Watch ecosystem and Fitness+ platform, integrating activity tracking with guided workouts [3] - Amazon is expanding its healthcare presence via One Medical, utilizing AI tools to improve access and convenience in health services [3] - United Natural Foods (UNFI) focuses on supplying natural and organic products that support healthier lifestyles, providing a range of groceries and wellness products [7][8] - The Vita Coco Company develops functional beverages, including coconut water and protein-infused drinks, aligning with health and fitness trends [11][12] - Doximity offers a digital platform for healthcare professionals, enhancing efficiency in healthcare delivery with tools for telehealth and administrative tasks [14][15] - Peloton Interactive combines high-end fitness equipment with digital content and community engagement, evolving towards a subscription-based model [17][19] Company Strategies - UNFI has adapted to consumer preferences for clean-label foods and has invested in distribution infrastructure to enhance efficiency and scale [8][9] - Vita Coco has expanded its product line to include fitness-focused beverages while maintaining brand leadership in the coconut water category [12][13] - Doximity has evolved into a comprehensive health technology solution, integrating telehealth and workflow tools to support healthcare professionals [15][16] - Peloton has shifted its strategy to emphasize subscription revenues, expanding its content library and diversifying distribution channels to reach a broader audience [19][20]

Group 1: Market Performance - US equities showed strong but volatile performance in Q4 2025, with the S&P 500 Index returning 2.7% and the Russell Midcap Growth Index declining 3.7% [1] - The ClearBridge Growth Strategy achieved its third consecutive quarter of outperformance by maintaining a balanced, highly active share approach [1] Group 2: Doximity, Inc. Overview - Doximity, Inc. (NYSE:DOCS) is a cloud-based digital platform for medical professionals, headquartered in San Francisco, California [2] - As of January 9, 2026, Doximity's stock closed at $43.79 per share, with a one-month return of -1.93% and a 52-week loss of 11.91% [2] - Doximity has a market capitalization of $8.24 billion [2] Group 3: Financial Performance and Market Sentiment - In Q2 of fiscal 2026, Doximity generated revenue of $169 million, reflecting a year-on-year increase of 23% [3] - Doximity faced pressure in the health care sector due to renewed volatility among higher-beta growth stocks [3] - The company is not among the 30 most popular stocks among hedge funds, although the number of hedge fund portfolios holding Doximity increased from 41 to 44 in the last quarter [3]