The average rating for Fulcrum Therapeutics, as given by seven analysts, is 'Buy'. Is this consensus based on technical analysis? It's important to note that traditional technical analysis typically employs the use of price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on the market sentiment of Fulcrum Therapeutics, which is essentially investors' perception of the company's future value. Let's delve into a few aspects of Fulcrum's technical analysis.
Additional examination
From a technical standpoint, Fulcrum Therapeutics (Ticker: FULC) shows promising signs of a bullish breakout in September. The company's mean deviation of 4.08 and standard deviation of 6.58 indicate a relatively high level of volatility, which could lead to significant price swings. The stock's 52-week high stands at
15, a level that, if breached, could trigger a strong bullish move. Despite a downside variance of 19.71, the stock has shown resilience with a recent price change of 0.09. However, potential investors should be aware of the company's
financial health. Fulcrum reported an operating loss of
112.6M and a net income loss from continuing operations of
109.9M. Despite these losses, the company's market risk adjusted performance of 1.33 and risk adjusted performance of 0.1095 suggest that the stock may offer a reasonable risk-reward ratio for investors with a high risk tolerance.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Fulcrum Therapeutics. In general, sophisticated investors focus on analyzing Fulcrum Therapeutics stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Fulcrum Therapeutics's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Fulcrum Therapeutics's intrinsic value. In addition to deriving basic predictive indicators for Fulcrum Therapeutics, many experienced traders also check how macroeconomic factors affect Fulcrum Therapeutics price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Fulcrum Therapeutics' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Fulcrum Therapeutics. Your research has to be compared to or analyzed against Fulcrum Therapeutics' peers to derive any actionable benefits. When done correctly, Fulcrum Therapeutics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Fulcrum Therapeutics.
How important is Fulcrum Therapeutics's Liquidity
Fulcrum Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Fulcrum Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Fulcrum Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Fulcrum Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Fulcrum Therapeutics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Fulcrum Therapeutics's total debt and its cash.
Fulcrum Therapeutics Gross Profit
Fulcrum Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Fulcrum Therapeutics 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 Fulcrum Therapeutics Gross Profit growth over the last 10 years. Please check Fulcrum Therapeutics'
gross profit and other
fundamental indicators for more details.
Closer look at Fulcrum Therapeutics Mean Deviation
Fulcrum Therapeutics has current Mean Deviation of 4.08. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 4.08 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Fulcrum Therapeutics |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Fulcrum Therapeutics Mean Deviation to its closest peers:
| FULC | 4.07636488429752 |
| DMTK | 4.49 |
| VANI | 3.07 |
| DMAC | 4.0 |
| A | 1.14 |
Fulcrum Therapeutics, Inc. (NASDAQ: FULC) has been showing signs of potentially bullish momentum as we move into September. Despite having a net income loss of $109.9M and an operating income loss of $112.6M, the company's cash position remains strong, with cash and equivalents standing at a robust
$221.79M.
This is supported by a high current ratio of 15.49X, indicating the company's ability to meet its short-term obligations. The company's stock has a beta of 2.13, suggesting higher volatility compared to the market. However, it's worth noting that the 50-day moving average is $3.7808, while the current typical price is $5.51, indicating a potential upward trend. The stock also has a Wall Street target price of $10.57, suggesting significant upside potential. Moreover, Fulcrum's market capitalization stands at
$375.88M, and the company's shares are largely held by institutions, with institutional ownership at 98.73%. The short percent is at 0.0701, with the number of shares shorted at 2.73M, down from 3.5M the prior month. This decrease in short interest could be a positive sign for the stock's
future performance. In conclusion, despite the company's losses, the technicals suggest that Fulcrum Therapeutics could be poised for a bullish breakout in September, backed by strong cash position, potential upward trend, and decreasing short interest. .
Possible September bounce back of Fulcrum?
Fulcrum Therapeutics has recently experienced a decrease in downside variance, settling at 19.71 as of today. This indicates a reduction in the stock's volatility, which often suggests a more stable investment environment. Given this diminished risk, there could be potential for a rebound in Fulcrum's stock as we approach September. Investors should closely monitor this stock and consider the opportunity for potential gains in their portfolio. Fulcrum Therapeutics is exhibiting above-average volatility over the chosen time horizon. Investors should thoroughly analyze Fulcrum Therapeutics independently to ensure that their intended
market timing strategies align with their expectations about Fulcrum Therapeutics' volatility. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Fulcrum Therapeutics' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect
Fulcrum Therapeutics' stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Fulcrum Therapeutics (USA Stocks: FULC) presents a compelling investment opportunity for the month of September. The company, which focuses on developing products for improving the lives of patients with genetically defined diseases, has a strong
analyst consensus with
5 strong buys,
2 estimates raised, and an overall consensus to buy. The valuation hype value stands at 5.49, slightly below the market value of 5.5, indicating a potential for growth. Furthermore, the estimated target price value is 11.187, with the highest estimated target price being 20, suggesting a significant upside potential. However, investors should also consider the fact that there have been 2 estimates lowered and 1 sell rating. Therefore, while the prospects for Fulcrum Therapeutics look promising, investors should exercise caution and thoroughly evaluate the risks associated with this investment. .
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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