DOCS Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Doximity Inc (DOCS) is not a strong buy at this moment for a beginner, long-term investor with $50,000-$100,000 to invest. The stock is currently in a bearish trend with oversold conditions, and while analysts see long-term potential, near-term headwinds, declining financial performance, and negative sentiment make it prudent to hold off on buying for now.
The technical indicators for DOCS are bearish. The MACD is negatively expanding (-1.12), RSI is extremely oversold (3.392), and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 25.414 and S2 at 21.844, indicating further downside risk.
Analysts have upgraded the stock to Buy ratings, citing the selloff as an overreaction and highlighting long-term growth potential as pharma budgets stabilize. The company continues to maintain strong market share and is investing in AI technology.
The stock has experienced a significant selloff (-24%) following cautious Q4 guidance. Financial performance shows declining net income (-18.14% YoY) and EPS (-16.22% YoY). Insider and hedge fund trading trends are neutral, and recent news includes a reduction in stake by William Blair and an investigation into potential fiduciary breaches.
In Q3 2026, revenue increased by 9.76% YoY to $185.05M, but net income dropped by 18.14% YoY to $61.56M. EPS also declined by 16.22% YoY to 0.31, and gross margin fell slightly to 89.89%. While revenue growth is positive, profitability metrics are declining.
Analysts have mixed views but lean positive. Canaccord upgraded the stock to Buy with a $34 price target, citing the selloff as a buying opportunity. Other firms lowered price targets but maintained Buy or Overweight ratings, with targets ranging from $25 to $56. Analysts believe growth is delayed but not structurally impaired, and the stock could recover as pharma budgets stabilize.
