Shares of Doximity, Inc. (DOCS) jump on business growth, investor inflows.
DOCS is an online platform for medical professionals. It offers opportunities for users to collaborate, coordinate care, host virtual patient appointments, and more. The platform has enjoyed strong new user pickup, setting new highs across company metrics. And new point of care and formulary products have also been adopted at high rates.
In its third-quarter earnings report for fiscal 2025, DOCS reported a 25% gain in revenue, up to $169 million for the quarter. It also had a record adjusted EBITDA margin of 61%, which is about $102 million, and a 39% jump from the prior year. The company’s net revenue retention rate for its top 20 customers was 122%, which shows it’s keeping its best customers happy. As for guidance, Doximity called for 13% more revenue (to a top end of nearly $134 million) and EBITDA of almost $308 million, which would represent a 54% margin.
It’s no wonder DOCS shares are up 56% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. Recently, DOCS has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in DOCS shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Doximity.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DOCS has had strong sales and earnings growth:
Source: FactSet
Plus, EPS is estimated to ramp higher this year by +8.7%.
Now it makes sense why the stock has been powering to new heights. DOCS has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Doximity has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when DOCS was a top pick…gaining over time:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The DOCS rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in DOCS at the time of publication.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.