J&J (JNJ, $164.62) vaccine supply halted, after mix-up at Emergent BioSolutions (EBS, $92.94) plant
A mix-up of ingredients of Johnson & Johnson’s ( J&J ) COVID-19 vaccine and Astra Zeneca’s at an Emergent BioSolutions (EBS) manufacturing plant in Maryland ruined 15 million doses of J&Js vaccine, leading to deliveries getting halted.
The mix-up occurred about two weeks ago, and all shipments from the plant have been halted by the Food and Drug Administration. The latter in probing into the matter.
Last July, Emergent BioSolutions signed a contract, for a deal worth $480 million over the first two years, to make vaccine components for J&J .
While currently distributed J&J vaccines are not affected, the plant is supposed to produce millions of the single-shot vaccines which are expected to help the U.S. scale up its COVID-19 vaccinations in coming weeks.
EBS has manufacturing deals with several other pharmaceutical companies for vaccines including Novavax , Vaxart Inc., and Humanigen.
Aroon Indicator for EBS shows an upward move is likely
EBS's Aroon Indicator triggered a bullish signal on October 28, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 193 similar instances where the Aroon Indicator showed a similar pattern. In of the 193 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 58 cases where EBS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 24, 2024. You may want to consider a long position or call options on EBS as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EBS just turned positive on October 28, 2024. Looking at past instances where EBS's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
EBS moved above its 50-day moving average on October 02, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for EBS crossed bullishly above the 50-day moving average on October 09, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EBS advanced for three days, in of 273 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EBS moved out of overbought territory on October 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EBS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EBS broke above its upper Bollinger Band on October 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EBS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.185) is normal, around the industry mean (56.825). P/E Ratio (17.730) is within average values for comparable stocks, (89.935). EBS's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.890). Dividend Yield (0.000) settles around the average of (0.122) among similar stocks. P/S Ratio (0.115) is also within normal values, averaging (18.882).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EBS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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a manufacturer of biopharmaceutical products
Industry PharmaceuticalsOther