Doximity Faces Sales Slowdown and EBITDA Growth Contraction

Doximity, Inc. (NYSE:DOCS) has seen its stock price decline by nearly 25% from its recent highs in February. Despite this, the company has a history of strong revenue growth and a solid balance sheet. However, sales and EBITDA growth have slowed, which may be contributing to the decline in stock price.

Doximity, Inc. (NYSE: DOCS) has seen its stock price decline by nearly 25% from its recent highs in February. Despite this, the company has a history of strong revenue growth and a solid balance sheet. However, sales and EBITDA growth have slowed, which may be contributing to the decline in stock price.

Doximity's stock has been volatile in recent months, with the company reporting a 1.44% decrease in the latest close session, despite the broader market gains. The stock's performance has been underwhelming compared to the S&P 500's daily gain of 0.06% and the Nasdaq's loss of 0.39% [1].

The company is expected to report earnings on August 7, 2025. Analysts forecast an EPS of $0.31, indicating a 10.71% upward movement from the corresponding quarter of the prior year. Revenue is forecasted to be $139.67 million, showing a 10.26% growth compared to the corresponding quarter of the prior year [1]. For the full year, DOCS's Zacks Consensus Estimates are calling for earnings of $1.46 per share and revenue of $625.72 million, representing year-over-year changes of +2.82% and +9.7%, respectively.

Investors should also consider Doximity's valuation metrics. The company is holding a Forward P/E ratio of 41.3, which is a premium compared to the average Forward P/E of 28.27 in its industry. Additionally, DOCS currently trades at a PEG ratio of 4.48, indicating a higher valuation compared to the Medical Info Systems industry's average PEG ratio of 3.23 [1].

The Medical Info Systems industry, of which Doximity is a part, is currently ranked in the top 33% of all 250+ industries, with a Zacks Industry Rank of 81. This ranking suggests that the industry has strong fundamentals and has outperformed the bottom half of industries by a factor of 2 to 1 [1].

While Doximity's recent performance has been disappointing, its strong historical growth and solid balance sheet suggest that the company may have the potential to rebound. However, investors should closely monitor the company's earnings performance and valuation metrics to make informed decisions.

References:
[1] https://finance.yahoo.com/news/doximity-docs-stock-drops-despite-221504903.html