Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth. the fund’s Retail Class shares gained 6.28% in the third quarter, modestly underperforming the 6.54% return of the benchmark Russell Midcap® Growth Index. Throughout the three months, the U.S. Federal Reserve’s long-awaited shift to lowering interest rates, the promise of artificial intelligence, and robust corporate profits boosted U.S. mid-cap growth stocks. Value equities drove the surge, while those with mid- and small-caps outperformed those with large-caps. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.
Fidelity Growth Strategies Fund highlighted stocks like Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter. Headquartered in San Francisco, California, Doximity, Inc. (NYSE:DOCS) provides a cloud-based digital platform for medical professionals. The one-month return of Doximity, Inc. (NYSE:DOCS) was -5.03%, and its shares gained 125.70% of their value over the last 52 weeks. On December 5, 2024, Doximity, Inc. (NYSE:DOCS) stock closed at $55.32 per share with a market capitalization of $10.328 billion.
Fidelity Growth Strategies Fund stated the following regarding Doximity, Inc. (NYSE:DOCS) in its Q3 2024 investor letter:
“Conversely, a large overweight in Doximity, Inc. (NYSE:DOCS), an online platform for medical professionals, gained 56% and was the top individual contributor versus the benchmark. Doximity says that 80% of U.S. doctors use its platform for networking, information, collaboration and more. The stock jumped after its August 8 quarterly report, when the company reported earnings and profitability that outpaced expectations, while also raising fiscal-2025 revenue guidance. We reduced the stake to take some profits but maintained the holding.”
A pathologist and a laboratory assistant in a laboratory researching medical news and data.
Doximity, Inc. (NYSE:DOCS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Doximity, Inc. (NYSE:DOCS) at the end of the third quarter which was 26 in the previous quarter. In the second quarter of fiscal 2025, Doximity, Inc. (NYSE:DOCS) delivered $137 million of revenue, which represents 20% year-on-year increase and a 7% above the high end of guidance range. While we acknowledge the potential of Doximity, Inc. (NYSE:DOCS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Doximity, Inc. (NYSE:DOCS) and shared Meridian Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.