Core Insights - Doximity's stock closed at $65.61, down 9.59% from the previous session, underperforming compared to the S&P 500's loss of 2.71% [1] - The stock has increased by 3.29% over the past month, outperforming the Medical sector's gain of 2.6% but lagging behind the S&P 500's gain of 3.5% [1] Earnings Performance - Doximity is expected to report earnings of $0.38 per share, reflecting a year-over-year growth of 26.67% [2] - The consensus estimate for revenue is $157.73 million, indicating a 15.27% increase from the same quarter last year [2] - For the full year, analysts project earnings of $1.51 per share and revenue of $632.56 million, representing changes of +6.34% and +10.9% respectively from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Doximity are crucial as they reflect short-term business trends [4] - Positive estimate revisions are seen as a sign of optimism regarding the business outlook [4] Valuation Metrics - Doximity has a Forward P/E ratio of 48.18, which is higher than the industry average of 41.88 [7] - The company has a PEG ratio of 3.5, compared to the industry average PEG ratio of 3.32 [7] Industry Context - The Medical Info Systems industry, which includes Doximity, ranks in the bottom 41% of all industries according to the Zacks Industry Rank [8] - The Zacks Industry Rank indicates that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Doximity (DOCS) reported first-quarter revenues of $145.9 million, reflecting a 15% year-over-year increase, with an adjusted EBITDA margin of 55% [1][4] - The company is focusing on artificial intelligence as a key component of its strategy, highlighted by the launch of Doximity AI Scribe and the acquisition of Pathway [1][5] Financial Performance - Free cash flow increased by 52% year over year, and net revenue retention remained strong at 118% [4] - Management anticipates an 11% revenue growth for fiscal 2026, despite some caution regarding policy-driven uncertainties [4] AI Initiatives - Doximity AI Scribe has over 10,000 beta testers, with 75% using the tool weekly, which aims to reduce after-hours documentation burdens for physicians [2][9] - The $26 million acquisition of Pathway enhances Doximity's clinical AI capabilities, introducing a proprietary medical corpus that scored 96% on the U.S. medical licensing exam [3][9] Competitive Landscape - Other companies, such as Certara and GE HealthCare, are also developing AI tools to enhance their offerings, with Certara's software revenues rising 22% year over year to $46 million [7] - GE HealthCare has invested significantly in R&D for AI integration across its products, showcasing new AI-enabled diagnostics and planning to launch nearly 200 AI/ML-enabled devices in the next three years [8]

Economic Indicators - US MBA mortgage applications fell by -12.7% in the week ended September 26, with the purchase mortgage sub-index down -1.0% and the refinancing sub-index down -20.6% [1] - The September ISM manufacturing index rose +0.4 to a 7-month high of 49.1, exceeding expectations of 49.0 [6] - The September ADP employment change unexpectedly fell by -32,000, marking the largest decline in 2.5 years, while August was revised lower to -3,000 from +54,000 [5] Market Reactions - Stocks initially moved lower due to the US government shutdown, but later recovered, with the S&P 500 and Nasdaq 100 reaching new all-time highs [2][4] - The dollar index fell to a one-week low, while gold prices climbed to a record high amid risk-off sentiment [2] - Rising corporate earnings expectations are a bullish backdrop for stocks, with over 22% of S&P 500 companies providing guidance for Q3 earnings that are expected to beat analysts' expectations [8] Sector Performance - Pharmaceutical stocks rallied, with AstraZeneca closing up more than +9% and Eli Lilly up more than +8%, driven by hopes from Pfizer's deal with the US government [15] - Chipmakers and AI-infrastructure stocks also saw gains, with Super Micro Computer closing up more than +9% and Micron Technology up more than +8% [16] - Grocery retailers declined after Amazon announced a new private-label food brand, leading to Dollar Tree and Dollar General closing down more than -4% and -3% respectively [22] Upcoming Economic Data - Weekly initial unemployment claims are expected to increase by +7,000 to 225,000, and August factory orders are expected to rise by +1.4% month-over-month [9] - September nonfarm payrolls are anticipated to increase by +51,000, with the unemployment rate expected to remain unchanged at 4.3% [9]

Core Insights - Doximity, Inc. is recognized as a leading healthcare technology stock, utilizing AI-driven tools and strategic acquisitions to enhance its market position [1] - The recent acquisition of Pathway Medical significantly improves Doximity's DoxGPT tool, providing instant access to verified medical data and AI responses [2] - Doximity has introduced Doximity Scribe, an AI tool that automates clinical documentation, thereby reducing administrative workload for clinicians [3] Financial Performance - In the last quarter ending June 30, 2025, Doximity reported a 15% year-over-year revenue increase, reaching $145.9 million, surpassing analyst expectations [4] - The company achieved non-GAAP earnings per share (EPS) of $0.36, indicating strong financial performance [4] - User engagement and product adoption have notably increased, particularly for new AI scribe and workflow tools [4]

Upgrades - Baird upgraded United Rentals (URI) to Outperform from Neutral with a price target of $1,050, up from $888, indicating stabilization in the rental industry after two years of deceleration [2] - Jefferies upgraded Sunrun (RUN) to Buy from Hold with a price target of $21, up from $11, expecting cash generation to materialize in the second half and strong growth through 2026 as U.S. Third-Party Owners gain market share [3] - HSBC upgraded Autodesk (ADSK) to Buy from Hold with a price target of $343, down from $388, noting Autodesk's potential to monetize artificial intelligence and likely margin expansion [4] - Jefferies upgraded Delta Air Lines (DAL) to Buy from Hold with a price target of $70, up from $62, citing a raised Q3 revenue outlook to 2%-4% from 0%-4% as a sign of confidence in topline growth for Q4 and 2026 [5] - Jefferies upgraded Carvana (CVNA) to Buy from Hold with a price target of $475, up from $385, based on consumer survey results and capacity analysis suggesting continued elevated growth [6] Downgrades - Northland double downgraded DraftKings (DKNG) to Underperform from Outperform with a price target of $33, down from $53, due to increasing headwinds from prediction markets [7] - RBC Capital downgraded GE Vernova (GEV) to Sector Perform from Outperform with a price target of $605, down from $631, as current valuations reflect strong demand and productivity improvements [7] - Evercore ISI downgraded Allstate (ALL) to In Line from Outperform with a price target of $233, up from $230, citing over-earning in auto insurance and limited scope for positive estimate revisions [7] - Goldman Sachs downgraded Doximity (DOCS) to Sell from Neutral with a price target of $64, up from $57, indicating the growth profile does not support the current valuation [7] - Goldman Sachs downgraded LivaNova (LIVN) to Neutral from Buy with a price target of $55, down from $56, due to decelerating sales growth and slowing margin expansion [7]

Core Insights - The article discusses the 12 best healthcare stocks to buy and hold for five years, highlighting the role of AI in improving healthcare services and addressing insurance denials [1][4]. Group 1: AI in Healthcare - Dr. Warris Bokhari's platform utilizes AI to appeal health insurance denials for approximately 70 autoimmune diseases, addressing a significant issue where 850 million denials occur annually in the U.S. [2][3]. - The platform was launched on October 2, 2024, and aims to assist patients in navigating care denials by generating appeal letters based on healthcare plans [4]. Group 2: Stock Selection Methodology - The selection of the top healthcare stocks was based on criteria including EPS growth of over 10% in the past five years, an expected EPS growth rate of at least 20% over the next five years, and a forward PE ratio greater than 20 [6]. - The final ranking of stocks was influenced by the number of hedge fund holders as tracked by the Insider Monkey database as of Q2 2025 [6][7]. Group 3: Company Highlights - **Intuitive Surgical, Inc. (NASDAQ:ISRG)**: Pioneered robotic-assisted minimally invasive surgery with its da Vinci systems, which are used globally. The company introduced advanced software features for its da Vinci 5 system in September 2025, enhancing surgical capabilities [9][10]. - **Doximity, Inc. (NYSE:DOCS)**: A leading healthcare technology stock that completed the acquisition of Pathway Medical, enhancing its AI-driven tools. The company reported a 15% year-over-year revenue increase, reaching $145.9 million for the quarter ending June 30, 2025 [13][15]. - **Penumbra, Inc. (NYSE:PEN)**: A leader in thrombectomy and vascular intervention technologies, recently introduced the Ruby XL System and the Lightning Bolt 6X device, expanding its product offerings and market reach [16][18].

Core Insights - Virtual healthcare and physician-focused digital platforms are transforming U.S. healthcare delivery, with Hims & Hers Health, Inc. and Doximity, Inc. leading the charge [1][2] - Hims & Hers focuses on consumer access and affordability, while Doximity leverages its physician network and enterprise solutions [2] Stock Performance & Valuation - Hims & Hers has increased by 208.8% over the past year, outperforming Doximity's 73.4% gain, although Doximity has outperformed Hims & Hers in the last three months with a 21.8% increase compared to Hims' 11.1% [3][6] - Hims & Hers has a forward price-to-sales (P/S) ratio of 4.6, while Doximity's is at 20.9, both above their respective three-year medians [5] - Hims & Hers has a Zacks Style Score with a Growth Score of A, while Doximity has a Growth Score of B [5] Growth Drivers for Hims & Hers - Hims & Hers is diversifying its offerings into areas like weight loss and chronic conditions, with the rollout of generic semaglutide presenting a significant opportunity [7] - The company is expanding internationally, with plans to enter Canada in 2026 and the acquisition of ZAVA enhancing its European presence [7] - Hims & Hers is investing in AI to improve diagnostics and treatment personalization, aiming for a technology-driven healthcare platform [8] Growth Drivers for Doximity - Doximity has over 80% of U.S. physicians active on its platform, with high engagement levels and a sticky ecosystem that supports recurring revenue growth [10] - The launch of Doximity Scribe, which automates clinical note-taking, has seen strong adoption, with over 75% of users returning weekly [11] - Doximity's growth is supported by strong adoption among pharmaceutical and health system clients, contributing to broad-based revenue growth [12] Earnings Projections - The Zacks Consensus Estimate for Hims & Hers suggests a 122.2% improvement in earnings per share (EPS) from 2024 to 2025 [15] - Doximity's fiscal 2026 EPS is projected to improve by 6.3% from fiscal 2025 [17] Price Targets - The average price target for Hims & Hers is $48.67, indicating a potential decline of 11.3% from the last close [20] - The average price target for Doximity is $68.83, suggesting a potential increase of 7.5% from the last close [23] Investment Considerations - Hims & Hers is viewed as a more stable investment opportunity with strong profitability and user engagement, while Doximity is rapidly expanding but may be trading at a higher valuation [24][25] - Both companies are ranked 3 (Hold) by Zacks, but Hims & Hers is considered to have a more capital-efficient model and better growth prospects [24][25]

Core Insights - The investment approach focuses on identifying businesses with potential for long-term growth and significant terminal value generation [1] - Emphasis is placed on understanding core business economics, including competitive advantages, unit economics, reinvestment opportunities, and management quality [1] - The goal is to generate long-term free cash flow and create shareholder value through fundamental research in sectors with strong secular tailwinds [1] Investment Philosophy - The investor is self-educated with a decade of experience in managing personal funds, primarily sourced from friends and family [1] - The motivation for sharing insights is to provide value to readers and receive feedback from the investment community [1] - The analysis aims to highlight the key drivers of long-term equity value, ensuring that it is both analytical and accessible [1]

Company Performance - Doximity (DOCS) closed at $73.60, with a daily increase of +1.28%, outperforming the S&P 500's gain of 0.48% [1] - The stock has risen by 12.91% over the past month, leading the Medical sector's gain of 1.09% and the S&P 500's gain of 2.46% [1] Upcoming Earnings - Doximity is expected to report EPS of $0.38, reflecting a 26.67% increase from the prior-year quarter [2] - The projected revenue for the upcoming earnings is $157.73 million, up 15.27% from the year-ago period [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $1.5 per share, indicating a +5.63% change from the previous year [3] - Revenue for the fiscal year is projected at $632.56 million, showing a +10.9% increase from the prior year [3] Analyst Estimates - Investors should monitor changes in analyst estimates for Doximity, as positive revisions indicate confidence in business performance [4] - Estimate revisions are correlated with near-term share price momentum, which can be leveraged for investment strategies [5] Zacks Rank and Valuation - Doximity currently holds a Zacks Rank of 3 (Hold), with no changes in the EPS estimate over the past month [6] - The company has a Forward P/E ratio of 48.38, which is higher than the industry average of 38.89 [7] - Doximity's PEG ratio stands at 3.52, compared to the industry average PEG ratio of 3.28 [7] Industry Overview - The Medical Info Systems industry, part of the Medical sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for investment [8]

Group 1 - Canaccord Genuity raised its price target on Doximity Inc. to $67 from $59 while maintaining a Hold rating [1] - The rapid pace of change in the large language model environment is reshaping healthcare technology, with trust among users being critical for long-term success [1] - Doximity's position in the early stages of the AI transition could allow it to become one of the winners in the space [2] Group 2 - Despite the raised price target, Canaccord maintained its Hold stance due to current valuation levels [2]