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Doximity: Turning Bullish After Stock Price Correction

Apr. 01, 2022 1:34 PM ETDoximity, Inc. (DOCS)8 Comments
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  • Doximity (DOCS) is a high-quality company which we previously covered. At the time we came to the conclusion shares were too expensive.
  • Since then shares have been almost cut in half, bringing us to ask ourselves if now is the time to start investing in the company.
  • Now it has a more reasonable valuation, we will explore if a case can be made for a starter position at current prices.

Female healthcare professional

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Doximity (NYSE:DOCS) is a high-quality company that we previously covered. At the time we came to the conclusion shares were too expensive. For those not familiar with the company we recommend going back to that

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Comments (8)

There is no growth. They guided to lower revenues. And still too expensive for value investors.
@ding dong FY23 revenue expected 450mil from 343mil FY22. that's called growth/sales

so if they hit that i mean we are talking rather expansive sales within the year and following back to previous years they grew very well. balance sheet is healthy, no debt, plenty of growth. im buying on weakness. listen to the recent conference call and you'll see why the stock bounced back within a day of the headline. You will pay a premium for this growing cash flow machine
Possible they may grow again. But their guidance for next quarter is not of growth. And its more likely in the current environment for the medium term to follow the short term and show no growth. With a P/E of 45+ you are taking on more risk gambling that they will grow. I am willing to take the gamble too, but at a lower risk, i.e. at a lower P/E and lower price.
Still expensive if you're a value investor. But the growth-relevant numbers are all good. IMO this comes down to whether or not they add new revenue streams
I'd like to hear from someone that's a DOCS subscriber and regular user. What features do you use/value the most? In comparison to other alternatives, does DOCS have a sustainable moat against the competition?
30 Apr. 2022
@CNY Investor Let me keep this brief. I have been using Doximity since 2012. In my estimation, it has no real competitors. For one thing, the credentialing to get on the platform is incredibly rigorous and cross checked. On LinkedIn, you are who you say you are. Doximity cross checks and verifies. That being said, about 80% of US physicians are on the platform, although the majority are probably not active users. The advantage is that when I am seeking to make referrals for patients who either move or are visiting other areas, I can reliably ascertain the credentials of potential providers to whom I can refer confidently. Another thing which is adds to Doximity’s professional utility is that it pushes relevant clinical and researcharticles germane to one’s specialties or interests to you, thus providing value in getting information that one otherwise might miss. This is on top of the general medical news stream which is presented in a timely and relevant fashion. And there is the ability to communicate with colleagues securely. Last, I also use its telemedicine platform and secure fax services every day when conducting virtual consultations and requesting HIPAA compliant secure information. You bet I have this stock. Hope this helps.
djh_van profile picture
@DrILoh That was really helpful for me understanding the company, so thank-you.

If I could ask one question if you don't mind: what's the single most useful feature in Doximity that you and/or your peers depend upon? I get the whole social side and the telemedicine side, but I just want to understand the #1 feature that makes this product "sticky" to healthcare professionals, and without that feature, would you consider the product still good, OK, or a no-no?

I do wish we could get a Quant rating on this stock.
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