Stocks quotes in this article:
In a column on Thursday, Jim Cramer said every once and awhile, a star is born. This year, we’ve seen a ton of new IPOs, but only two have risen to the level of star quality, Cramer said. Those companies are Upstart Holdings (UPST) and Doximity (DOCS) , and they both have a lot of upside.
Doximity is a social network for health care professionals. The platform already counts 80% of doctors and 50% of nurses as members. Shares rose 12.9% after the company reported its latest earnings, which included a 50% rise in revenues, Cramer told his viewers Thursday night.
Let’s check on the charts of DOCS.
In this daily Japanese candlestick chart of DOCS, below, we can see all of the trading since the IPO. Prices are in an uptrend – higher lows and higher highs. Trading volume increased with the recent gap higher and follow-through gains. The On-Balance-Volume (OBV) line turned up telling us that buyers are now more aggressive.
In this daily Point and Figure chart of DOCS, below, we can see that the software is projecting an upside price target in the $143 area.
Bottom line strategy: We don’t have a lot of price history to work with but what we do see is bullish. Traders could go long DOCS closer to $72 risking to $61. The $143 area is our Point and Figure target.
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