- Adaptive Biotechnologies (ADPT) is a commercial-stage biotech with strong technical momentum.
- Shares are up 250% in the past year and just hit a new three-year high.
- ADPT maintains a 100% “Buy” opinion from Barchart, a Trend Seeker “Buy” signal, and robust technical indicators.
- Fundamentals show projected revenue and earnings growth, but the company struggles with profitability and exhibits high volatility.
Today’s Featured Stock
Valued at $2.6 billion, Adaptive Biotechnologies (ADPT) is a commercial-stage biotech company. It develops and commercializes immune-driven clinical products to transform the diagnosis and treatment of disease. The company’s product pipeline includes immunoSEQ and clonoSEQ.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ADPT checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 7, the stock has gained 31.18%.
Barchart Technical Indicators for Adaptive Biotechnologies
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Adaptive Biotech hit a three-year high of $17.62 in intraday trading on Oct. 16.
- ADPT has a Weighted Alpha of +232.18.
- Adaptive Biotech has an 100% “Buy” opinion from Barchart.
- The stock gained 253.88% over the past year.
- ADPT has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $16.46 with a 50-day moving average of 13.61.
- Adaptive Biotech has made 12 new highs and gained 28.08% in the last month.
- Relative Strength Index (RSI) is at 64.56.
- There’s a technical support level around $16.95.
Don’t Forget the Fundamentals
- $2.6 billion market capitalization.
- Revenue is projected to grow 31.78% this year and another 14.04% next year.
- Earnings are estimated to increase by 31.90% this year and additional 13.70% next year.
Analyst and Investor Sentiment on Adaptive Biotech
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts and most investment advisory services disagree on ADPT.
- The Wall Street analysts tracked by Barchart have issued 7 “Strong Buy” and 2 “Hold” opinions on the stock with price targets between $11 and $20.
- Value Line rates the stock “Lowest.”
- CFRA’s MarketScope Advisor rates it a “Buy.”
- Morningstar thinks the stock is 60% overvalued.
- 55 investors following the stock on Motley Fool think the stock will beat the market while 16 think it won't.
- 7,400 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on Adaptive Biotech
Analysts project growth in revenue and earnings for ADPT. The company has had increasing revenues in recent years but has had a hard time producing profits. Only time will tell if the company is able to meet analysts’ optimistic projections. Investors should note the stock’s extreme volatility and employ disciplined risk management.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
