High Potential But Currently Too Risky: NovoCure Limited (NVCR), Change Healthcare Inc. (CHNG)

NovoCure Limited (NASDAQ:NVCR) has its shares plummet by -20.35% or $20.09 from its all-time high of $98.7, with NVCR attaining that price back on August 21, 2019. The drop in the price of the shares saw it stand at $78.61 per share. NVCR has been trading at a low of $26.02 over the past one year but it surged by 202.11% or $52.59 to reach the $78.61 mark. Following the massive rise in stock price, NVCR received more attention from investors and analysts. On Monday, the stock dipped by -8.23%, which caused investors and analysts to worry about it. Following the plunge in price, the NVCR beta stands at 2.38, implying that its volatility level has gone up by -1.38 ahead of the general market. A look at the stock’s 200-day moving average shows that it is 44.13% above while its 50-day moving average shows that it is currently -1.48% below. Compared to 4.37% average daily volatility of past month, the stock’s average volatility for this week has increased by 1.93 as the volatility level currently stands at 6.3%.

Over the past seven days, the stock has witnessed a price dip by -13.48%. This massive drop in stock price has caught the attention of both investors and market traders. The stock has performed excellently over the past 52 weeks, rising by 73.15% during that time frame and is now up by 134.8% since this point this year. NVCR has fell by -10.15% over the past 30 days, with its equity price gaining% of its value over the past ninety days. These figures add up to see the stock record a growth of 58.84% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of NVCR. Most of them are of the view that the stock would be able to reach $85 over the next 12 months. If that happens, then the stock would witness a 8.13% rise in its price and that would see the stock’s market cap hit an astonishing $9 Billion. Analysts view this stock as a bearish at the moment as its average rating is 2.3. According to Reuters, many of the 6 analysts covering the stock at the moment believe it is a Buy. 3 of them rated NVCR as a Hold while 3 of them either rated it as a Buy or a Strong Buy. However, 0 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a neutral position as it was able to attain 38.37 points. The trading volume now standing at 1614784 shares. The increase of 729484 shares in trading volume shows that traders and investors have shown more interest in the stock over the past few weeks. During that trading session, the average trading volume of NVCR was 885300 shares, which is more than 1.82 times higher than its usual trading volume.

Analysts have set a 1-year price target for this stock, with most of them expecting it to reach $18.6/share over the next 12 months. If that happens, then CHNG would witness a 55.13% rise from its current price. The price of the stock has been moving between $11.46 and $13. Not all analysts believe it would hit that target though, as some of them expect it to trade lower, as low as $14 per share. In the same breath, one analyst believes that the stock is set to soar even higher than expected, as the price target was set at $22.

The stock is currently oversold as its Stochastic Oscillator (%D) is at 26.74%, which implies that a jump in price could be experienced soon. Its shares P/S ratio is below theindustry average and below theby the wider market, as CHNG’s P/S ratio currently stands at 0. The stock’s estimated price-earnings (P/E) multiple is 7.33 which is also above the 12-month price-earnings (P/E) which stands at 0. Change Healthcare Inc. has experienced a fall in its earnings, recording an decrease rate of 0% in each quarter over the past five years.

The stock has an average rating of 1.7 which means that it has been rated as a Buyby most analysts. The stock is being covered by 13 analysts who gave a consensus recommendation of 1.7 which implies that it is currently in a bull/bear situation. Reuters looked into analysts covering Change Healthcare Inc., and 1 of them believe that the stock is a Hold at the moment. 12 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (0) rated it as a sell at the moment.