Summary
The RealReal (REAL) has shown exceptional price appreciation, gaining 142% since a Trend Seeker buy signal on 11/5, with strong technical indicators.
The company operates an online marketplace for luxury goods, with significant growth in revenue and earnings expected over the next two years.
Despite strong technical signals, analysts have mixed opinions, with price targets ranging from $2.25 to $15.00, and some concerns about overvaluation and market competition.
Investors should be cautious, as these stocks are volatile and speculative, and it's crucial to follow a disciplined investment strategy with regular reevaluation.
The Chart of the Day belongs to the online luxury goods consignment retailer The RealReal (REAL). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/5 the stock gained 142.00%.
REAL Price vs Daily Moving Averages:
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 187.99+ Weighted Alpha
- 293.14% gain in the last year
- Trend Seeker buy signal
- 3.09 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 15 new highs and up 135.05% in the last month
- Relative Strength Index 85.14%
- Technical support level at $9.09
- Recently traded at $8.90 with 50 day moving average of $4.35
Fundamental Factors:
- Market Cap $1.03 billion
- Revenue expected to grow 9.12% this year and another 9.03% next year
- Earnings are estimated to increase by 57.76% this year and an additional 40.82% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 3 strong buy, 3 hold and 1 strong sell opinion on the stock
- Analysts' price targets are between $2.25 and $15.00 (When professional analysts who adhere to the principals of the CFA exam all come up with such wide variations it's a sure sign nobody really knows for sure!!!!)
- Value Line rates the stock its average rating of 3
- CFRA's MarketScope rates the stock a hold
- MorningStar thinks the stock is 314% over valued and comments: "Growth in mobile commerce and younger luxury consumers may favor cheaper self-service marketplaces like eBay, Poshmark, or Mercari. Material risk of value destruction lingers for equityholders, with the firm likely to need to refinance its 2028 and 2029 notes to remain solvent. Pressure at other luxury marketplaces like Farfetch (acquired by narrow-moat Coupang) and YNAP (slated to be purchased by Mytheresa) suggest that the category may not prove as amenable to online penetration as initially expected.
- 7,670 investors monitor the stock on Seeking Alpha
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 and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
