Doximity Inc (DOCS) Stock: A High-Growth Pick with Strong Technical Setup

For investors looking for companies with both solid fundamental growth traits and positive technical patterns, a combined screening method can find interesting opportunities. By selecting for stocks with a High Growth Momentum Rating above 4, a Technical Rating above 7, and a Setup Rating above 7, the approach focuses on businesses showing strong earnings momentum that are also in clear uptrends and forming helpful chart patterns. This method tries to capture the upside of high-growth companies at technically good entry points. One stock that now fits this multi-part standard is Doximity Inc-Class A (NYSE:DOCS).

High Growth Momentum Fundamentals

Doximity shows an interesting growth profile, receiving a High Growth Momentum Rating of 6. This rating brings together different parts of a company's earnings and sales path, with attention on short-term momentum, speed, and analyst views. For investors focused on growth, these points are important as they often come before continued stock price gains.

The company's solid position is supported by several main fundamental metrics:

• Earnings Per Share (EPS) Growth: The company has shown forceful and speeding up bottom-line growth.
  • Trailing Twelve-Month (TTM) EPS grew 43.3% year-over-year.
  • Recent quarterly EPS growth has been regularly solid, with the last three quarters showing year-over-year rises of 36.4%, 55.2%, and 52.0%, in that order.
• Sales Growth: Revenue increase stays healthy, with TTM sales up 19.5% and the most recent quarter growing 15.2% compared to the same time last year.
• Profitability and Surprises: Doximity keeps very good profitability, with a profit margin of 36.5% in the last quarter. Importantly, the company has a clean record of going past analyst predictions, beating both EPS and revenue estimates in every one of the last four quarters. An average EPS beat of over 25% points to meaningful upward momentum that analysts might not have fully predicted.
• Analyst Confidence: The growth story is also backed by positive analyst changes, with the average EPS estimate for the next year increasing 6.8% over the last three months. These changes are a main part of the momentum rating, as they show growing optimism from those who follow the company most closely.

Technical Strength and Market Position

From a chart viewpoint, Doximity shows very good technical health, getting a perfect Technical Rating of 10. This score judges the stock's trend strength, relative performance, and place compared to important moving averages. A high technical rating is necessary for momentum investors as it confirms that the positive fundamental story is being seen in the stock's price movement.

The technical report points out several positive factors:

• Both the long-term and short-term trends are labeled positive.
• The stock is doing better than 90% of the market on a yearly performance basis and is trading in the high part of its 52-week range.
• It is trading above all its main moving averages (20, 50, 100, and 200-day), which are all in rising setups.
• Inside its industry, Health Care Technology, Doximity is doing better than 88% of its competitors.

High-Quality Setup Pattern

Beyond a solid trend, a good entry point is important for handling risk. Doximity has a Setup Rating of 8, showing the stock is forming a helpful consolidation pattern. The setup rating measures the quality of a possible trade entry by looking at factors like nearness to support, lower volatility, and the clearness of set risk levels.

The analysis indicates a pullback is currently happening, possibly giving a positive entry chance. The technical report finds a major support area between $70.64 and $72.74, made by a mix of moving averages and trendlines. With almost no resistance right above the current price, a clear move above the noted resistance at $74.87 could point to the next step up. This setup allows for a well-planned trade structure with a logical stop-loss level set below the support area.

Conclusion

Doximity is an example where solid fundamental growth numbers are matched by a forceful technical uptrend and a clear chart setup. The company's notable earnings growth, history of beating estimates, and strong profitability create a firm base for momentum investors. At the same time, the stock's technical profile confirms market leadership and a positive trend, while the current consolidation gives a possible entry point with a defined risk-management plan.

For investors wanting to find other companies that match this strategy of mixing high growth momentum with solid technical setups, you can run the screen yourself for updated results.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. All data and analysis are based on publicly available information and should be independently verified. The author has no position in the security mentioned. Always conduct your own due diligence and consult with a qualified financial advisor before making any investment decisions.