Practice Caution with This Hot Stock Up 493% in the Past Year
Twist Bioscience (TWST) has surged 493% over 52 weeks, maintaining strong technical momentum.
Shares just hit a new all-time high and has a 100% "Buy" technical opinion.
However, its RSI of 72.95 and high short interest signal potential overextension.
Consensus price targets are well below current levels, suggesting limited upside.
Valued at $10.47 billion, Twist Bioscience (TWST) is a biotechnology company. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium.
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. TWST checks those boxes. The Trend Seeker issued a new "Buy" signal on Aug. 3. The stock has gained 63.84% since that signal.
The stock recently traded at $165.78 with a 50-day moving average of $119.81.
Revenue is projected to grow 21.19% this year but be down by 18.41% next year.
Earnings are estimated to increase by 71.648% this year but decrease slightly by 5.42% next year.
The Wall Street analysts followed by Barchart give the stock 9 "Strong Buy," 3 "Hold," and 1 "Strong Sell" opinion with price targets from $45 to $160.
Morningstar thinks the stock is 28% overvalued with a fair value of $130.12.
12,960 investors are following the stock on Seeking Alpha, which rates it a "Hold."
Short interest is a very high 19.24% of the float with 6.91 days to cover the float.
Sometimes a stock gets a little ahead of its skis. The stock has analysts' attention, and if you are already holding it, put a stop loss on it and continue to enjoy the ride. If you don't have it, I think this is not a good entry point. Note the high short interest and the lone "Strong Sell" call with analysts' price target consensus of $113.50.
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 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 .
