Investors eyeing Praxis Precision Medicines Inc. (PRAX) for a potential breakout performance in February should consider several key factors. The biotechnology firm's shares have seen a short increase from
235.5K in the prior month to
371K this month, suggesting a growing pessimistic sentiment among investors. However, the firm has a potential upside of
14.83%, indicating that there could be a significant profit opportunity for investors who are willing to weather the risk. The company has a high beta of 2.838, meaning it is more volatile than the market average, but its risk-adjusted performance stands at 0.118, suggesting that the company has been moderately successful at delivering returns for the risk it has taken on. Despite an operating margin of -54.52% and a net income from continuing operations showing a loss of
137.6M, the firm's share price has remained resilient, opening at $43.49 and maintaining a low of $42.18.
Main Points
The asset utilization ratio is an indicator that shows the revenue generated for every dollar of assets a company currently holds. Praxis Precision Medicines Inc. has an asset utilization ratio of 1.68 percent. This implies that the company is generating $0.0168 for each dollar of assets. An increase in the asset utilization ratio indicates that Praxis Precision Medicines Inc. is becoming more efficient in using each dollar of assets for its daily operations.
What is the right price you would pay to acquire a share of Praxis Precision? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Praxis Precision Medicines this year
Annual and quarterly reports issued by Praxis Precision Medicines are formal
financial statements that are published yearly and quarterly and sent to Praxis stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Praxis Precision often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Praxis Precision Gross Profit
Praxis Precision Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Praxis Precision previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Praxis Precision Gross Profit growth over the last 10 years. Please check Praxis Precision's
gross profit and other
fundamental indicators for more details.
Breaking down Praxis Precision Indicators
Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Praxis Precision's future annual earnings. Given the historical accuracy of 79.81%, the future earnings per share of the company is estimated to be -3.1792 with the lowest and highest values of -3.5982 and -2.8486, respectively. Please note that this consensus of annual earnings estimates for Praxis Precision Med is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is Praxis a risky opportunity?
Let's check the volatility. Praxis is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Praxis (USA Stocks:PRAX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Praxis Precision stock makes you a part-owner of that company.
Praxis Precision MedicinesInc Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Praxis Precision Med. The Praxis consensus assessment is calculated by taking the average estimates from all of the analysts covering Praxis Precision.
| Strong Buy | 5 | 71.43 |
| Buy | 0 | 0.0 |
| Hold | 2 | 28.57 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
"Buy low, sell high" is a common adage in the world of finance, and it seems to apply to Praxis Precision Medicines Inc. (PRAX) as we move into February. Despite the company's negative operating margin of -54.52 and net income losses of $137.6M, there are several indicators that suggest a potential breakout. The company's current ratio stands at a healthy 4.56X, indicating a strong ability to cover its short-term liabilities. Furthermore, the company's shares are largely owned by institutions (85.69%), which often signals confidence in the company's
future prospects. With a 52-week high of $76.8 and a current typical price of $43.84, there is significant room for growth. However, investors should also consider the company's high beta of 2.84, which indicates higher volatility and risk. In conclusion, while Praxis Precision Medicines Inc. shows potential for a breakout, investors should approach with caution due to the inherent risk.
Praxis Precision has 99.97 percent likelihood to slide below $43 in February
Praxis Precision Medicines Inc. has demonstrated a significant reduction in volatility, with the standard deviation falling to 8.04 as of today. This indicates a lower risk associated with the stock's price movements. However, despite the decreased volatility, our predictive models suggest a 99.97 percent probability of the stock price falling below $43 in February. This potential downward trend could be influenced by a variety of factors, including market sentiment,
economic indicators, or company-specific news. Therefore, investors should exercise caution and take into account this high likelihood of a price drop when making investment decisions. As of January 13, 2024, Praxis Precision reports a Semi Deviation of 5.95, a risk-adjusted performance of 0.118, and a Coefficient Of Variation of 579.16. Compared to fundamental indicators, the
technical analysis model allows you to examine existing technical drivers of Praxis Precision, as well as their interrelationships. In other words, this information can be used to determine if the company will indeed reflect its model of past market data, or if prices will eventually revert. We were able to analyze nineteen technical drivers for Praxis Precision Med, which can be compared to its rivals.
We encourage you to review Praxis Precision Med's market risk-adjusted performance, variance, and the relationship between the variance and potential upside to determine if Praxis Precision Med is somewhat accurately priced, assuming the market reflects its current price of $43.37 per share. Given that Praxis Precision has a Jensen Alpha of 1.12, we recommend you to review Praxis Precision Med's recent market performance to ensure the company can sustain itself in the future. In conclusion, Praxis Precision Medicines Inc. (PRAX) presents a compelling investment opportunity. With an Analyst Overall Consensus of 'Buy' and
5 Strong Buys, the stock is favorably positioned. The Analyst Target Price Estimated Value stands at
103.909, significantly higher than the current Valuation Market Value of 43.37. This suggests a potential upside for investors. However, it's worth noting that the Valuation Real Value is 56.79, indicating that the stock may be slightly overvalued at present. Despite this, the high Analyst Highest Estimated Target Price of 270 provides a promising outlook for the stock. Investors should, however, remain cautious of the Valuation Hype Value of 46.13, which could indicate over-excitement in the market. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Praxis Precision Medicines. Please refer to our
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