NeoGenomics, Inc. (NEO) Has A Huge Competitive Advantage But Stay Cautious

The price of NeoGenomics, Inc. (NASDAQ:NEO) stock ended December 30, 2019 trading at $29.11 which saw downtrend of 130.85% since the beginning of 2019. For most investors, the -2.15% rally in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.

A look at the NEO stock today shows that it has gained 139.98% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of NeoGenomics, Inc. (NASDAQ:NEO). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for NeoGenomics, Inc. (NEO) is 1.5 which is a buy rating. Over the past week, the stock has been rated as a Buy 6 times while it has been rated as a Hold 0 times. The 52-week high price for NEO is $30 which is attained on December 24 while its 52-week low currently stands at $11.98 and was reached on January 04. At the moment, the stock is trading $7.44 above its YTD moving average set at $21.67.

Moving on, NeoGenomics, Inc. (NEO) last released its earnings for the September 2019 quarter of the fiscal year. The company performed decently over the past three months, with its earnings up 100% year-over-year at $0.04. The company brought a surprise of 0 as analysts were predicting $0.04 per share. The revenue generated by NeoGenomics, Inc. in the September 2019 quarter surged by 51% to reach $104.67 million. This is low compared to the $69.1 million it recorded in the same quarter last year. To see what traders should watch in its December 2019 financial results, analysts have consensus earnings per share of $0.05 which is higher than the $0.04 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 32.36%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 20 % could be achieved. The company has also recorded a revenue of $378.4 million over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that NeoGenomics, Inc. (NASDAQ:NEO) is now trading at 1617.22X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 34.17X while the industry average stands at 75.4X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. NeoGenomics, Inc. was able to achieve an EPS of $0.02 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, December 30 of 2019, the 14-day Absolute ATR (Average True Range) for NEO moved by $0.88. Over the past seven days, the stock’s average daily volatility stood at 2.91%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. NeoGenomics, Inc.’s trading volume has recently moved to 772.64 thousand, which is compared with the average daily volume of 680.01 thousand shares.

The daily chart for NEO, points out that the company has recorded 29.61% gains over the past six months. However, it is still 142.99% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 1.82% though it is 6.9% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 18.44% while it is up 27.55% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of NEO reveals that it has gained some grounds as it ended Monday with a 12.83% rise over the past 30 days.