- Natera (NTRA) demonstrates strong technical momentum, with shares hitting a new all-time high.
- Shares are up more than 105% over the past year.
- Valuation concerns persist, as Morningstar sees NTRA as 33% overvalued and multiple analysts rate it a “Hold” despite bullish technicals.
- I recommend holding NTRA while it trades above its 50-day moving average.
Today’s Featured Stock
Valued at $50 billion, Natera (NTRA) offers genetic testing and diagnostics with proprietary bioinformatics and molecular technology.
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 and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. NTRA checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 3. The stock has gained 33.18% since that signal.
Barchart’s Indicators for Natera
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.
Natera scored an all-time high of $361.81 on Sept. 17.
- Natera has a Weighted Alpha of 117.98.
- NTRA has a 100% “Buy” opinion from Barchart.
- The stock has gained 105.92% over the past 52 weeks.
- Natera has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $361.80 with a 50-day moving average of $302.45.
- NTRA had 9 highs and gained 14.98% in the last month.
- 60-month beta of 1.54.
- Relative Strength Index (RSI) is at 72.09.
- There’s a technical support level around $340.03.
Don’t Forget the Fundamentals
- $50 billion market capitalization.
- Revenue is projected to grow 26.15% this year and another 19.97% next year.
- Earnings are estimated to increase by 8.68% this year and an additional 92.59% next year.
Analyst and Investor Sentiment on Natera
- The Wall Street analysts followed by Barchart give the stock 19 “Strong Buy,” 2 “Moderate Buy,” and 4 “Hold” opinions with price targets from $280 to $435.
- Value Line rates the stock “Below Average” with price targets of $229 to $540.
- Morningstar thinks the stock is 33% overvalued with a fair value of $250.04.
- CFRA’s MarketScope rates the stock as “Hold.”
- 11,830 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- TipRanks’ analysts’ price target is $349.28.
- Short interest is 3.83% of the float with 4.37 days to cover the float.
The Bottom Line on Natera
The revenue and earnings projections are pretty solid, but Natera’s valuation seems to be a concern. I’d hold the stock as long as it trades above its 50-day moving average.
Additional disclosure: The Barchart Chart 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 speculate 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.