- Roivant Sciences (ROIV) shows strong technical momentum and is trading at new all-time highs.
- Shares are up 52% over the past year and 20% in the last month.
- ROIV has a 100% “Buy” opinion from Barchart and a Trend Seeker “Buy” signal.
- Despite the price gains, Roivant lacks consistent revenue and earnings growth.
Today’s Featured Stock
Valued at $11.8 billion, Roivant Sciences (ROIV) is a biopharmaceutical company dedicated to improving the delivery of healthcare to patients.
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. ROIV checks those boxes. Since the Trend Seeker signaled a new “Buy” on Aug. 13, the stock has gained 50.6%.
Barchart Technical Indicators for Roivant Sciences
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.
Roivant hit an all-time high of $18.06 in morning trading on Oct. 20.
- ROIV has a Weighted Alpha of +76.72.
- Roivant has an 100% “Buy” opinion from Barchart.
- The stock gained 51.13% over the past year.
- ROIV has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $17.93 with a 50-day moving average of $14.09.
- Roivant has made 10 new highs and gained 19.78% in the last month.
- Relative Strength Index (RSI) is at 86.43.
- There’s a technical support level around $16.98.
Don’t Forget the Fundamentals
- $11.8 billion market capitalization.
- Revenue is projected to decrease 26.24% this year but gain again by 691.02% next year.
- Earnings are estimated to decrease by 35.37% this year and decrease an additional 11.28% next year.
Analyst and Investor Sentiment on Roivant Sciences
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 ROIV.
- The Wall Street analysts tracked by Barchart have issued 10 “Strong Buy” and 3 “Hold” opinions on the stock with price targets between $16 and $24.
- Value Line rates the stock “Average.”
- CFRA’s MarketScope Advisor rates it a “Hold.”
- Morningstar thinks the stock is fairly valued.
- 14 investors following the stock on Motley Fool think the stock will beat the market while 5 think it won’t.
- 5,670 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on Roivant Sciences
Although Wall Street analysts have 10 “Strong Buy” opinions on the stock I can’t see buying this one after that big run up in price. A comment made on Seeking Alpha gives me caution: “The company’s substantial cash burn, approximately $200 million per quarter, could erode its cash reserves quickly if not managed effectively amidst ongoing development programs.”
Until management shows me that they can make consistent increases in revenue and earnings, I’ll be looking elsewhere for better opportunities.
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.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
