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Doximity(DOCS) - 2025 Q4 - Annual Results
2025-05-15 20:04
[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) Doximity achieved strong financial performance in Q4 and full fiscal year 2025, marked by significant revenue growth, increased profitability, and robust cash flow generation [Q4 Fiscal Year 2025 Financial Highlights](index=1&type=section&id=Q4%20Fiscal%20Year%202025%20Financial%20Highlights) Doximity closed fiscal year 2025 with strong fourth-quarter performance, marked by significant revenue growth, increased profitability, and robust cash flow generation, reporting a **17% year-over-year increase in total revenues** and substantial growth in operating and free cash flow - Doximity achieved **record engagement and strong profits** in Q4 FY2025, with its newsfeed, workflow, and AI tools reaching new highs, aiding doctors in saving time and improving patient care[4](index=4&type=chunk) Q4 Fiscal Year 2025 Financial Performance | Metric | Q4 FY2025 (Millions USD) | Q4 FY2024 (Millions USD) | YoY Change | Margin Q4 FY2025 | Margin Q4 FY2024 | | :-------------------------------- | :----------------------- | :----------------------- | :--------- | :--------------- | :--------------- | | Total Revenues | $138.3 | $118.1 | 17% | - | - | | Subscription Revenue | $131.9 | $112.7 | 17% | - | - | | Net Income | $62.5 | $40.6 | 54% | 45.2% | 34.4% | | Non-GAAP Net Income | $77.7 | $51.0 | 52% | 56.2% | 43.2% | | Adjusted EBITDA | $69.7 | $56.4 | 24% | 50.4% | 47.8% | | Diluted Net Income Per Share | $0.31 | $0.20 | 55% | - | - | | Non-GAAP Diluted Net Income Per Share | $0.38 | $0.25 | 52% | - | - | | Operating Cash Flow | $98.5 | $63.9 | 54% | - | - | | Free Cash Flow | $97.0 | $62.3 | 56% | - | - | [Fiscal Year 2025 Financial Highlights](index=1&type=section&id=Fiscal%20Year%202025%20Financial%20Highlights) For the full fiscal year 2025, Doximity delivered strong financial results, achieving **20% year-over-year revenue growth** and substantial increases in profitability and cash flow, reflecting robust platform engagement and operational efficiency Fiscal Year 2025 Financial Performance | Metric | FY2025 (Millions USD) | FY2024 (Millions USD) | YoY Change | Margin FY2025 | Margin FY2024 | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | :------------ | :------------ | | Total Revenues | $570.4 | $475.4 | 20% | - | - | | Subscription Revenue | $543.8 | $450.1 | 21% | - | - | | Net Income | $223.2 | $147.6 | 51% | 39.1% | 31.0% | | Non-GAAP Net Income | $286.1 | $195.6 | 46% | 50.2% | 41.2% | | Adjusted EBITDA | $313.8 | $230.5 | 36% | 55.0% | 48.5% | | Diluted Net Income Per Share | $1.11 | $0.72 | 54% | - | - | | Non-GAAP Diluted Net Income Per Share | $1.42 | $0.95 | 49% | - | - | | Operating Cash Flow | $273.3 | $184.1 | 48% | - | - | | Free Cash Flow | $266.7 | $178.3 | 50% | - | - | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Doximity provides forward-looking guidance for Q1 and the full fiscal year 2026, projecting continued revenue growth and healthy Adjusted EBITDA [Q1 Fiscal Year 2026 Guidance](index=2&type=section&id=Q1%20Fiscal%20Year%202026%20Guidance) Doximity provided guidance for the first fiscal quarter ending June 30, 2025, projecting continued revenue growth and strong Adjusted EBITDA Q1 Fiscal Year 2026 Projections | Metric | Q1 FY2026 Guidance (Millions USD) | | :-------------- | :------------------------------- | | Revenue | $139 - $140 | | Adjusted EBITDA | $71 - $72 | [Fiscal Year 2026 Guidance](index=2&type=section&id=Fiscal%20Year%202026%20Guidance) For the full fiscal year ending March 31, 2026, Doximity anticipates further revenue expansion and healthy Adjusted EBITDA margins Fiscal Year 2026 Projections | Metric | FY2026 Guidance (Millions USD) | | :-------------- | :------------------------------- | | Revenue | $619 - $631 | | Adjusted EBITDA | $333 - $345 | [Company Overview](index=3&type=section&id=Company%20Overview) Doximity is the leading digital platform for U.S. medical professionals, dedicated to enhancing doctor productivity and improving patient care through innovative digital tools [About Doximity](index=3&type=section&id=About%20Doximity) Doximity, founded in 2010, is the leading digital platform for U.S. medical professionals, serving over 80% of U.S. physicians, with a mission to enhance doctor productivity and improve patient care - Doximity is the **leading digital platform for U.S. medical professionals**, with **over 80% of U.S. physicians** as network members[10](index=10&type=chunk) - The platform provides verified clinical members with **digital tools for collaboration**, staying updated on medical news, career management, streamlining administrative tasks, and conducting virtual patient visits[10](index=10&type=chunk) - Doximity's mission is to help doctors be **more productive** to provide **better care for their patients**[10](index=10&type=chunk) [Financial Statements (GAAP)](index=4&type=section&id=Financial%20Statements%20(GAAP)) Doximity's GAAP financial statements for Q4 and FY2025 reflect a strong balance sheet, robust revenue growth, and significant increases in net income and cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, Doximity's balance sheet shows a healthy financial position with significant increases in cash and marketable securities, contributing to a substantial rise in total assets and stockholders' equity year-over-year Consolidated Balance Sheet Data | Metric (Thousands USD) | March 31, 2025 | March 31, 2024 | YoY Change | | :-------------------------------- | :------------- | :------------- | :--------- | | **Assets** | | | | | Cash and cash equivalents | $209,614 | $96,785 | 116.6% | | Marketable securities | $706,050 | $666,115 | 6.0% | | Total current assets | $1,088,620 | $912,941 | 19.2% | | Total assets | $1,264,309 | $1,079,374 | 17.1% | | **Liabilities** | | | | | Total current liabilities | $156,257 | $147,250 | 6.1% | | Total liabilities | $181,684 | $177,977 | 2.1% | | **Stockholders' Equity** | | | | | Total stockholders' equity | $1,082,625 | $901,397 | 20.1% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Doximity's consolidated statements of operations for Q4 and FY2025 demonstrate strong revenue growth and improved profitability, with net income significantly increasing year-over-year, driven by higher gross profit and controlled operating expenses Consolidated Statements of Operations Data | Metric (Thousands USD, except per share) | Q4 FY2025 | Q4 FY2024 | YoY Change | FY2025 | FY2024 | YoY Change | | :-------------------------------------- | :-------- | :-------- | :--------- | :----- | :----- | :--------- | | Revenue | $138,288 | $118,057 | 17.1% | $570,399 | $475,422 | 20.0% | | Gross profit | $123,821 | $105,490 | 17.4% | $514,525 | $424,753 | 21.1% | | Income from operations | $48,680 | $41,852 | 16.3% | $227,800 | $163,878 | 39.0% | | Net income | $62,458 | $40,618 | 53.8% | $223,185 | $147,582 | 51.2% | | Diluted net income per share | $0.31 | $0.20 | 55.0% | $1.11 | $0.72 | 54.2% | | Total stock-based compensation expense | $18,060 | $11,857 | 52.3% | $72,386 | $51,076 | 41.7% | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Doximity demonstrated strong cash generation in both Q4 and the full fiscal year 2025, with significant increases in net cash provided by operating activities and free cash flow, while also managing investing and financing activities Consolidated Statements of Cash Flows Data | Metric (Thousands USD) | Q4 FY2025 | Q4 FY2024 | YoY Change | FY2025 | FY2024 | YoY Change | | :-------------------------------------- | :-------- | :-------- | :--------- | :----- | :----- | :--------- | | Net cash provided by operating activities | $98,487 | $63,944 | 54.0% | $273,265 | $184,096 | 48.4% | | Net cash provided by (used in) investing activities | $(24,473) | $(76,170) | 67.9% | $(29,298) | $31,186 | -193.9% | | Net cash used in financing activities | $(29,670) | $(14,078) | 110.7% | $(131,138) | $(276,524) | 52.6% | | Net increase (decrease) in cash and cash equivalents | $44,344 | $(26,304) | -268.2% | $112,829 | $(61,242) | -284.2% | | Cash and cash equivalents, end of period | $209,614 | $96,785 | 116.6% | $209,614 | $96,785 | 116.6% | [Non-GAAP Financial Measures & Key Business Metrics](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Business%20Metrics) This section details Doximity's non-GAAP financial measures and key business metrics, providing a comprehensive view of operational performance and growth drivers [Explanation of Non-GAAP Measures](index=7&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Doximity utilizes several non-GAAP financial measures, including non-GAAP gross profit, net income, and Adjusted EBITDA, to provide a more comprehensive view of its financial performance by excluding certain non-cash or non-recurring items - Non-GAAP measures exclude **stock-based compensation**, amortization of acquired intangible assets, changes in fair value of contingent earn-out consideration, and restructuring/impairment charges[21](index=21&type=chunk) - **Adjusted EBITDA** is defined as net income before interest, income taxes, depreciation, and amortization, further adjusted for stock-based compensation, contingent earn-out consideration, restructuring/impairment charges, and other income, net[21](index=21&type=chunk) - **Free cash flow** is calculated as cash flow from operating activities minus purchases of property and equipment and internal-use software development costs[21](index=21&type=chunk) [Key Business Metrics Definitions](index=7&type=section&id=Key%20Business%20Metrics%20Definitions) Doximity tracks key business metrics such as net revenue retention rate, which measures subscription-based revenue growth from existing customers, and the number of customers with trailing 12-month subscription revenue greater than $500,000, indicating business scale - **Net revenue retention rate** measures the trailing 12-month subscription-based revenue from existing customers, reflecting renewals, expansion, contraction, and churn[22](index=22&type=chunk) - **Customers with trailing 12-month subscription revenue greater than $500,000** is a key indicator of business scale, counting customers contributing over $500,000 in subscription revenue over the TTM period[22](index=22&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) The reconciliation tables provide a detailed breakdown of adjustments made to GAAP figures to arrive at non-GAAP metrics, highlighting the impact of stock-based compensation, amortization, and other items on profitability and cash flow for both quarterly and annual periods Reconciliation of Net Income (GAAP) to Adjusted EBITDA | Metric (Thousands USD, except percentages) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------------- | :-------- | :-------- | :----- | :----- | | Net income (GAAP) | $62,458 | $40,618 | $223,185 | $147,582 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Depreciation and amortization | 2,829 | 2,548 | 10,659 | 10,265 | | Provision for (benefit from) income taxes | (4,064) | 7,335 | 40,389 | 37,620 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Other income, net | (9,714) | (6,101) | (35,774) | (21,324) | | **Adjusted EBITDA** | **$69,736** | **$56,440** | **$313,829** | **$230,460** | | Net income margin (GAAP) | 45.2% | 34.4% | 39.1% | 31.0% | | Adjusted EBITDA margin | 50.4% | 47.8% | 55.0% | 48.5% | Reconciliation of Cash Flow from Operating Activities to Free Cash Flow | Metric (Thousands USD) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------- | :-------- | :-------- | :----- | :----- | | Net cash provided by operating activities | $98,487 | $63,944 | $273,265 | $184,096 | | Purchases of property and equipment | — | — | — | (147) | | Internal-use software development costs | (1,507) | (1,634) | (6,525) | (5,654) | | **Free cash flow** | **$96,980** | **$62,310** | **$266,740** | **$178,295** | Reconciliation of GAAP to Non-GAAP Operating Income and Net Income | Metric (Thousands USD, except per share) | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------------- | :-------- | :-------- | :----- | :----- | | GAAP operating income | $48,680 | $41,852 | $227,800 | $163,878 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Amortization of acquired intangibles | 1,061 | 1,061 | 4,244 | 4,518 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | **Non-GAAP operating income** | **$67,968** | **$54,953** | **$307,414** | **$224,713** | | GAAP net income | $62,458 | $40,618 | $223,185 | $147,582 | | Stock-based compensation | 18,060 | 11,857 | 72,386 | 47,430 | | Amortization of acquired intangibles | 1,061 | 1,061 | 4,244 | 4,518 | | Change in fair value of contingent earn-out consideration liability | 167 | 183 | 680 | 951 | | Restructuring and impairment charges | — | — | 2,304 | 7,936 | | Income tax effect of non-GAAP adjustments | (4,050) | (2,751) | (16,719) | (12,775) | | **Non-GAAP net income** | **$77,696** | **$50,968** | **$286,080** | **$195,642** | | Non-GAAP net income margin | 56.2% | 43.2% | 50.2% | 41.2% | | Non-GAAP diluted net income per share | $0.38 | $0.25 | $1.42 | $0.95 |
Kuehn Law Encourages Investors of Doximity, Inc. to Contact Law Firm
GlobeNewswire News Room· 2025-05-15 14:14
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 ...
Doximity Q4 Earnings Likely to Reflect Strong Product Momentum
ZACKS· 2025-05-12 11:36
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].
Doximity: Strong Fundamentals And Pharma Tailwinds Meet An Overpriced Valuation
Seeking Alpha· 2025-05-01 13:23
Doximity, Inc. (NYSE: DOCS ) operates an online platform service which saw huge growth in user engagement, especially among medical prescribers. Such a growth momentum is expected to persist, fuelled by the pharmaceutical marketing segment, which was identified as the segmentAs a self-taught retail investor, I’m interested to share insights through thoughtful, research-driven articles. I’m glad you’ve taken the time to visit my profile, and I hope my content provides value and sparks new ideas for your inve ...
Is Coya Therapeutics, Inc. (COYA) Outperforming Other Medical Stocks This Year?
ZACKS· 2025-04-29 14:40
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].
Tempus AI vs. Doximity: Which AI in Healthcare Stock is a Better Buy?
ZACKS· 2025-04-11 20:00
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]
Doximity (DOCS) Falls More Steeply Than Broader Market: What Investors Need to Know
ZACKS· 2025-03-27 23:20
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 ...
Doximity (DOCS) Beats Stock Market Upswing: What Investors Need to Know
ZACKS· 2025-03-21 23:20
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]
Buy These 5 Top-Ranked Stocks to Play Likely Earnings Beat
ZACKS· 2025-03-12 13:25
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]
Buy 5 High-Flying Health & Fitness Stocks Year to Date With More Upside
ZACKS· 2025-03-07 14:50
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]