Doximity - the 'Linkedin for Doctors' is the best performing healthcare stock in 2025
Exec Summary
As of February 23, 2025, Doximity (NYSE: DOCS), often dubbed the "LinkedIn for Doctors," has shown remarkable strength in the healthcare stock arena, positioning it as a standout performer this year.
This cloud-based platform, used by over 80% of U.S. physicians, facilitates professional networking, patient care coordination, telehealth, and access to medical updates, making it a vital tool for healthcare professionals. Its stock has surged 165% over the past year, with a market cap exceeding $14 billion, reflecting investor enthusiasm for its growth trajectory.
Doximity’s fiscal Q3 2025 results, ending December 31, 2024, underscore this momentum: revenue climbed 25% year-over-year to $168.6 million, beating expectations, while net income soared 57% to $75.2 million. For the full fiscal year ending March 31, 2025, the company projects revenue between $564.6 million and $565.6 million, buoyed by a 167% net revenue retention rate and a 44.5% free cash flow margin.
These figures highlight its ability to grow profitably, a rarity in healthcare IT, and its dominance in the digital physician market, which it expects to expand 5-7% annually, with Doximity aiming to outpace that.
Comparatively, the healthcare sector has lagged in recent years, but 2025 is showing signs of a turnaround. While giants like UnitedHealth or biotech stars like Vertex Pharmaceuticals often dominate headlines, Doximity’s niche focus and execution have propelled it ahead. Posts on X and recent analyses, like those from Insider Monkey, rank it among the top-performing healthcare stocks year-to-date as of mid-February, with a stock price hovering around $75 after a 40% jump post-earnings in November 2024. Unlike broader telemedicine plays like Teladoc, Doximity’s physician-centric model and subscription-based revenue—95% from pharma and health systems—give it a unique edge.
With only two months of data, Doximity is setting the pace as the the best performing healthcare stock in 2025. Other contenders, like Hims & Hers (up sharply with GLP-1 drug buzz), or niche players like TransMedics, could challenge it as the year unfolds.
But Doximity’s blend of profitability, network effects, and telehealth leadership—its Dialer tool has been named Best in KLAS for three years running, makes it a compelling case for the top spot so far. The healthcare tech market, projected to hit $534 billion by year-end, only amplifies its potential. For now, it’s certainly among the elite and possibly the pacesetter, pending how the next ten months shake out.
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Growth of Doximity and Share Price
Doximity's share price has seen significant increases in the last 2 years due to a confluence of factors that demonstrate the company's strong performance and future potential. Here are some key reasons:
1. Strong Financial Performance:
Exceeding Expectations: Doximity has consistently surpassed analysts' expectations for revenue and earnings, demonstrating its ability to grow and generate profits. This positive financial performance has fueled investor confidence and driven up the share price.
Revenue Growth: Doximity's revenue has been growing at an impressive rate, driven by increased adoption of its platform and expansion of its services. This growth indicates the company's ability to capitalise on its market position and attract new customers.
Profitability: Doximity has maintained strong profitability margins, demonstrating its efficient business model and ability to manage costs effectively.
2. Platform Growth and Engagement:
High User Base: Doximity boasts a large and engaged user base of healthcare professionals, including a significant percentage of U.S. physicians. This strong network effect makes the platform valuable for both users and advertisers.
Increased Engagement: Doximity users are actively engaged with the platform, utilising its various features for communication, collaboration, and professional development. This high engagement translates into increased value for advertisers and contributes to revenue growth.
Expansion of Services: Doximity has expanded its services beyond basic networking, offering tools for telehealth, virtual collaboration, and AI-powered clinical workflow. This diversification of services attracts more users and increases the platform's stickiness.
3. Market Trends and Opportunities:
Digital Health Transformation: The healthcare industry is undergoing a digital transformation, with increased adoption of technology for communication, collaboration, and care delivery. Doximity is well-positioned to benefit from this trend.
Increased Digital Advertising in Healthcare: Pharmaceutical companies and healthcare organisations are increasingly shifting their advertising budgets towards digital channels. Doximity's platform, with its large and engaged user base of healthcare professionals, is an attractive advertising space.
Telehealth Growth: The rise of telehealth has created new opportunities for Doximity to provide tools and services that facilitate virtual care delivery.
4. Investor Confidence:
Positive Analyst Ratings: Many analysts have given Doximity positive ratings and price targets, indicating their confidence in the company's future prospects.
Strong Investor Sentiment: Investors have generally been positive about Doximity's performance and potential, leading to increased demand for its shares and driving up the price.
In summary, Doximity's share price has increased significantly in the last 2 years due to its strong financial performance, platform growth and engagement, favorable market trends, and positive investor sentiment. The company's ability to capitalise on its market position and expand its services suggests that it has the potential for continued growth and success in the future.
Doximity (NYSE: DOCS) Potential Share Price in December 2025
Predicting where Doximity’s (NYSE: DOCS) share price might land by December 2025 involves peering through a mix of current performance, market trends, and analyst expectations, though it’s worth noting the future’s a moving target, and no one’s got a crystal ball.
As of February 23, 2025, Doximity’s stock sits around $75, fresh off a 165% climb over the past year, driven by stellar earnings and a robust outlook. Let’s break it down.
Doximity’s recent fiscal Q3 2025 numbers (ending December 31, 2024) show revenue up 25% to $168.6 million and net income spiking 57% to $75.2 million, with a full-year revenue forecast of $564.6–$565.6 million. That’s a solid base, profitability’s rare in healthcare tech, and their 167% net revenue retention signals sticky customers. The healthcare IT market, pegged to hit $534 billion by year-end 2025, gives them room to grow, especially with over 80% of U.S. doctors on their platform. Their telehealth tool, Dialer, keeps winning accolades, and subscription revenue (95% of the pie) from pharma and health systems looks steady.
Analyst forecasts offer a guidepost. As of early 2025, 15 Wall Street analysts peg a 12-month price target at $53.47, ranging from $38 to $75, implying a potential drop of about 29% from today’s $75. That’s based on data up to December 20, 2025, but it’s conservative, some boosted targets post-Q3, like Goldman Sachs at $80 or Raymond James at $83. If Doximity keeps beating estimates (Q3 EPS of $0.45 crushed the $0.34 consensus), upward revisions could follow. Earnings growth is forecast at a modest 4.15% annually through 2027, lagging the U.S. market’s 20.29%, but their 21.78% return on assets beats the industry’s 9.29%.
Market dynamics matter too. Healthcare stocks are perking up in 2025 after years in the doldrums, and Doximity’s volatility (12% weekly, above 75% of U.S. stocks) suggests big swings. If they sustain 20-25% revenue growth and the sector stays hot, they could ride the wave. But risks loom, macro headwinds like rising interest rates or a pharma ad slowdown could dent sentiment. Their November 2024 40% post-earnings pop shows the market’s quick to reward, but also to punish (see the 12.85% drop after a November peak).
So, where might it end up by December 2025?
A bullish case, say, 20% annual revenue growth, sustained margins, and a sector tailwind, could push the stock to $90-$100, assuming a price-to-earnings ratio holds around 50-60x (it’s 65x now). A base case, aligning with analyst caution and moderate 8% revenue growth, might see it hover near $60-$70, especially if volatility cools. A bearish scenario, economic stumbles or execution missteps—could drag it back to $40-$50, closer to that $53.47 target. Given their track record and market position, I’d lean toward the higher end, maybe $80-$85, but that’s contingent on no major hiccups and a friendly broader market. It’s a strong player, but not immune to gravity.
Disclaimer: The information provided herein is for educational and informational purposes only and does not constitute investment advice. Investing in the stock market involves substantial risk, and you could lose money. The author(s) of this information are not financial advisors and do not hold themselves out as such. Any opinions expressed are based on publicly available information and are subject to change without notice. No representation or warranty is made as to the accuracy or completeness of the information contained herein. Past performance is not indicative of future results. Before making any investment decisions, you should conduct your own research and consult with a qualified financial advisor. The author(s) and publisher(s) of this information shall not be liable for any losses or damages, including without limitation, direct, indirect, incidental, special, or consequential losses, arising out of or in connection with the use of this information.
Nelson Advisors work with Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.
Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://www.healthcare.digital
HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk
HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb
HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk
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