Summary
Verona Pharma (VRNA) shows strong technical indicators with a 54.89% gain since 11/19, driven by Barchart's Trend Seeker buy signal.
The company focuses on developing ensifentrine for respiratory diseases, currently in Phase 3 trials, with multiple inhaler formulations.
Barchart's technical indicators highlight 100% buy signals, a 222.12% gain in the last year, and a Relative Strength Index of 71.94%.
Analysts' consensus targets a 12% gain, but MorningStar deems the stock 47% overvalued; diversification and stop-loss strategies are recommended.
The Chart of the Day belongs to biotechnology company Verona Pharma (VRNA) . 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 11/19 the stock gained 54.89%.
VRNA Price vs Daily Moving Averages:
Verona Pharma plc, a clinical stage biopharmaceutical company, focuses on development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs. The company's product candidate is ensifentrine, an inhaled and dual inhibitor of the phosphodiesterase (PDE) 3 and PDE4 enzymes that acts as both a bronchodilator and an anti-inflammatory agent in a single compound, which is in Phase 3 clinical trials for the treatment of chronic obstructive pulmonary disease, asthma, and cystic fibrosis. It is developing ensifentrine in three formulations, including nebulizer, dry powder inhaler, and pressurized metered-dose inhaler. Verona Pharma plc was incorporated in 2005 and is headquartered in London, the United Kingdom.
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
- 267.00+ Weighted Alpha
- 222.12% gain in the last year
- Trend Seeker buy signal
- .40 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 6 new highs and up 26.59% in the last month
- Relative Strength Index 71.94%
- Technical support level at $56.00
- Recently traded at $58.98 with 50 day moving average of $45.59
Fundamental Factors:
- Market Cap $4.61 billion
- Revenue expected to grow another 570.94% next year
- Earnings estimated to increase 82.26% 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 analysts issued 5 strong buy and 3 buy opinions on the stock
- Their price targets between $44 and $77 with a consensus of $65.75 for another 12% gain
- MorningStar thinks the stock is 47% over valued
- There are 41 investors monitoring the stock on Motley Fool and 24 this it will out perform the S&P 500 and 17 think it will under perform the S&P 500
- 5,600 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.
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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.
