Doximity and Krispy Kreme have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – February 28, 2025 – Zacks Equity Research shares Doximity DOCS as the Bull of the Day and Krispy Kreme DNUT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors GM, Ford Motor F and Toyota Motor TM.Here is a synopsis of all five stocks:Bull of the Day:Zacks Rank #1 (Strong Buy) stock Doximity is a networking platform for medical professionals built with tools for secure communication, telemedicine, and career development. Investors can think of Doximity as Microsoft's "LinkedIn," except rather than focusing on the entire job market, Doximity focuses on the niche and unique healthcare provider market, helping doctors, nurse practitioners (NPs) and other clinicians to share ideas, communicate, and stay up-to-date with the latest medical news and research. Doximity also boasts a HIPAA (Health Insurance Portability and Accountability Act) approved secure messaging and video call platform for patient conversations, career listings, salary information, and digital faxing."The Digital Platform for Doctors"Doximity dubs itself "The digital platform for doctors," and its footprint in the market backs its bold website claim with hard data. According to Doximity's latest earnings presentation, over 80% of all US physicians use Doximity.In early February, DOCS outlined its impressive financials, which included subscription revenue growth of 19% (the best kind of growth because it's recurring), 1 117% net revenue retention rate, and some of the highest adjusted EBITDA margins on Wall Street (55%). Meanwhile, the company marked its fourth consecutive quarter of double-digit top-and-bottom line growth. Quarterly EPS grew 55% while revenue leaped 25% year-over-year.Meanwhile, DOCS is not only growing rapidly and consistently, but the healthcare disruptor is smashing Wall Street analyst expectations along the way. In fact, since going public in 2021, DOCS has beat analyst expectations for fifteen straight quarters. Over the past four quarters, DOCS has delivered an average positive surprise of 26% over Zacks Consensus Analyst Estimates.DOCS: Standout RS & Post-EPS PatternWhile many growth stocks are more than 40% off their highs, DOCS has exhibited relative strength, gaining ~32% thus far year-to-date. The stock is consolidating smartly after jumping more than 30% following earnings. The relative strength and lack of selling in the stock suggest that when the market pressure is relieved, DOCS is poised to lead.Doximity: Transitioning Healthcare from Analog to DigitalIn today's heavily bifurcated political climate, it's nearly impossible to find an issue on which both sides of the aisle can agree on. However, one rare issue that most anyone on the political spectrum can agree on is that US healthcare costs have gotten out of hand. The United States spends more per capita on healthcare than any other country, and the gap has expanded rapidly over time.While many of these expenditures result from waste, fraud, and abuse, other inefficiencies contribute to the high costs. For instance, 80% of healthcare documents are sent via snail mail and fax, while 78% of physicians report burnout, with health IT being one of the least satisfying factors. Doximity is the antidote to many of these issues, and as healthcare providers slowly transition to the digital world, DOCS should be the primary beneficiary.Bottom LineDoximity's robust growth, consistent earnings beats, and strategic positioning within the rapidly digitizing healthcare sector make it a compelling investment. By addressing critical inefficiencies and providing essential tools for medical professionals, DOCS is contributing to transforming the healthcare industry.Bear of the Day:Zacks Rank #5 (Strong Sell) stock Krispy Kreme is a Charlotte-based. Globally recognized sweet treat brand, best known for its signature "Original Glazed" doughnut. Krispy Kreme's company model consists of a fresh doughnut shop network (known for the "Hot Now" sign), retail strategic partnerships, and e-commerce and delivery growth. The company operates mainly in the US and Canada; however, its international footprint extends to the UK, Australia, and Mexico. In addition, the company has a diversified sweet treat portfolio that includes entities like Insomnia Cookies. That said, Krispy Kreme's success mainly depends on its fresh doughnuts segment.America's Newfound Health KickThe COVID-19 Pandemic was a tough time for many Americans, which led to solitude, mental health issues, job loss, and, for some, the loss of loved ones. However, the COVID-19 silver lining is that, with extra time and a work-from-home-environment, many Americans discovered the importance of health. In addition, data from the COVID-19 virus conclusively showed that death from the virus (and many other viruses, for that matter) can largely be sidestepped if the patient is not overweight.Though New Year's health resolutions are nothing new, a 2025 Ipsos poll found that "Younger Americans are particularly likely to resolve to healthier living – and even if you've been keeping up with Gen Z wellness trends, the extent of that enthusiasm is striking.Krispy Kreme Earnings PlungeWhile not all young people will stick with their resolutions, a long overdue seismic shift appears to be taking place in America. Health influencers such as Gary Brecka and Andrew Huberman have gained millions of followers over the past few years, and young people are listening. That's terrible news for Krispy Kreme, which has endured an EPS plunge from $0.24 in 2022 to just $.06 today.Government Oversight RiskFormer Independent Presidential Candidate and current Health and Human Services (HHS) Robert F Kennedy Jr. is intent on "fixing the food" to "Make America Healthy Again." RFK aims to end subsidies for junk food and sugary drinks, eliminate ultra-processed foods, and develop dietary guidelines to educate Americans.While RFK has just started his new role, he is already making waves. For instance, an RFK social media post that received millions of views read, "Congratulations SteaknShake on being the first national fast-food chain to begin the transition away from seed oils. Thanks for leadership in the crusade to Make America Healthy Again." While RFK may not be able to shut down restaurants like Krispy Kreme, his influence on the national stage may impact on American dietary habits.Bottom LineKrispy Kreme, a globally recognized sweet treat brand heavily reliant on its fresh doughnut segment, faces significant challenges as American dietary habits shift towards healthier lifestyles.Additional content:Trump's Auto Tariffs Threaten Industry, Automakers Struggle to AdaptPresident Donald Trump's decision to impose sweeping tariffs on auto imports from Mexico, Canada and the European Union (EU) is set to send shockwaves across the global automotive industry. A whopping 25% tariff on vehicles and parts from these key trade partners is set to take effect on April 2, 2025. This threatens to disrupt supply chains, inflate vehicle prices and trigger widespread job losses.Prominent car manufacturers like General Motors, Ford Motor and Toyota Motor depend on Mexico's strategic location and skilled labor force to build vehicles efficiently. With tariffs potentially adding thousands of dollars to each car, demand could plummet, forcing production slowdowns and workforce reductions.The U.S. auto sector, which relies heavily on a tightly integrated North American and Mexican supply network, is expected to be severely hit. Critical components such as crankshafts and batteries often cross borders multiple times before being assembled. This means that tariffs could increase costs at every stage.Furthermore, the tariffs are also expected to provide a competitive advantage to automakers from South Korea and Japan, who could sidestep these costs. As uncertainty looms, automakers and suppliers are bracing for a turbulent period that could reshape the future of the auto industry.General MotorsThe company has been implementing "playbook" strategic measures to minimize financial and operational disruptions due to the tariffs. Its reliance on Mexican manufacturing, where it produces many of its profitable pickup trucks and lower-cost electric vehicles, makes it especially vulnerable.GM imported nearly 750,000 vehicles from Canada or Mexico to the United States in 2024. The company began planning for this scenario in November and has already reduced its international inventory by more than 30% to avoid the risk of finished vehicles suddenly becoming significantly more expensive. It expects to mitigate up to 50% of the additional costs in the short term without deploying capital. However, prolonged tariffs could force GM to make tougher decisions, like shifting production locations or restructuring its supply chains.Ford MotorF has acknowledged that Trump's tariffs could severely disrupt its operations. It has a Chihuahua engine plant and two assembly plants in Cautitlan and Hermosillo in Mexico. The company exported nearly 196,000 cars from Mexico to North America in the first half of 2024, with approximately 90% of the vehicles going to the United States alone. Ford also has an assembly plant in Oakville, Canada, where it has been planning to make a gas-powered F-Series pickup truck beginning 2026.Terming them as a source of "cost and chaos", the tariffs could "blow a hole in the U.S. industry", as per F. While Ford sources most of its steel and aluminum domestically, some suppliers rely on imported materials, which could increase production costs. The company is assessing strategic shifts until the full impact becomes clearer.Ford is also considering stockpiling inventory in anticipation of higher import costs. However, its executives are still concerned that even small disruptions across the supply chain could add up, negatively impacting the company's bottom line. Ford's CEO has been actively engaging with government officials in Washington D.C., to advocate for a more comprehensive approach rather than targeting only Mexico and Canada.Toyota MotorTM's operational costs are expected to surge and threaten its market position. Many of Toyota's best-selling vehicles, including the RAV4 and Corolla are produced in Canada and Mexico, leaving them exposed to higher import duties. TM used to make its Tacoma pick-up trucks in the United States but now does so at its two plants in Mexico and ships them back to the country.In preparation, TM has been working closely with the Japanese government and industry leaders to seek diplomatic solutions and minimize the tariffs. It is also considering adjustments to its supply chain and production strategy to reduce the impact. Toyota already has several U.S. manufacturing facilities in states like Kentucky, Texas and Indiana that can help absorb some of the effects. However, shifting production is expected to be costly and time-consuming. When in effect, the tariffs may result in increased Toyota vehicle prices, reduced demand and squeezed margins.Thus, as the tariffs loom, automakers are bracing for a phase of turmoil that could redefine the industry. On the other end of this challenge, the auto sector dynamics may emerge in an unpredictable way.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ford Motor Company (F): Free Stock Analysis Report Toyota Motor Corporation (TM): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Doximity, Inc. (DOCS): Free Stock Analysis Report Krispy Kreme, Inc. (DNUT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks