- Verona Pharma (VRNA) is showing exceptional technical strength, hitting a new high in morning trading on June 24.
- The stock has a 100% technical “Buy” signal via Barchart.
- The stock has surged 515% over the past year, with Trend Seeker and moving averages confirming the bullish trend.
- Fundamentals are robust and generally bullish analyst sentiment supports VRNA.
Today’s Featured Stock:
Valued at $7.87 billion, Verona Pharma (VRNA) is a clinical-stage biopharmaceutical company. It researches, discovers and develops therapeutic drugs to treat respiratory diseases primarily in the United Kingdom and North America.
Verona was last featured in Chart of the Day on Feb. 4 when it closed at $58.98. Shares have gained 66.18% since then.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted 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. VRNA checks those boxes. Since the Trend Seeker signaled a buy on April 28, the stock has gained 41%.
VRNA Price vs. Daily Moving Averages:
Barchart Technical Indicators for Verona:
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.
Verona shares hit a new 52-week high on Tuesday, June 24, touching $98.21 in morning trading.
- Verona has a 100% technical “Buy” signal.
- The stock recently traded at $98.21, above its 50-day moving average of $75.24.
- VRNA has a Weighted Alpha of +474.59.
- The stock has gained 515.8% over the past year.
- VRNA has its Trend Seeker “Buy” signal intact.
- Verona is trading above its 20, 50 and 100-day moving averages.
- The stock has made 12 new highs and gained 28.7% in the last month.
- Relative Strength Index is at 78.50%.
- The technical support level is $95.08.
Follow the Fundamentals:
- $7.87 billion market cap.
- Revenue is projected to grow 833.62% this year and another 80.56% next year.
- Earnings are estimated to increase 156.67% this year.
Analyst and Investor Sentiment on Verona:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.
- Wall Street analysts tracked by Barchart issued 10 “Strong Buy” opinions on the stock.
- MorningStar thinks the stock is 55% overvalued.
- 6,270 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Verona currently has momentum and support from both the market and individual investors.
I caution that VRNA is volatile and speculative — use strict risk management and stop-loss strategies.
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.
