Kala Pharmaceuticals (KALA) recently reported its fourth-quarter earnings, which missed estimates, causing some concern among investors. The company reported a loss of $0.32 per share, missing the consensus estimate of a loss of $0.29 per share. Despite the miss, the company's revenue beat expectations, coming in at $14.6 million compared to the expected $13.8 million.
The Q4 earnings miss is certainly a cause for concern, but it's important to consider the larger picture when evaluating KALA as an investment opportunity. One positive sign for the company is the recent crossover of its 50-day moving average above its 200-day moving average on February 17, 2023. This technical indicator, known as a "golden cross," is a bullish signal that suggests the stock is shifting to an upward trend.
Moving averages are commonly used by technical analysts to identify trends and potential buy/sell signals. The 50-day moving average is a short-term trend indicator, while the 200-day moving average is a long-term trend indicator. When the 50-day moving average crosses above the 200-day moving average, it suggests that the stock is gaining momentum and could continue to rise in the future.
Overall, Kala Pharmaceuticals' Q4 earnings miss is undoubtedly noteworthy, but it's crucial to consider more than just one quarter's worth of data. Recent golden crosses for the company are possibly bullish signs that might point to a longer-term higher trend for the stock.
The 10-day moving average for KALA crossed bullishly above the 50-day moving average on June 05, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 .
The Momentum Indicator moved above the 0 level on June 26, 2025. You may want to consider a long position or call options on KALA as a result. In of 82 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 KALA just turned positive on June 25, 2025. Looking at past instances where KALA's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
KALA moved above its 50-day moving average on June 03, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a +3 3-day Advance, the price is estimated to grow further. Considering data from situations where KALA advanced for three days, in of 209 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 52 cases where KALA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KALA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KALA broke above its upper Bollinger Band on July 09, 2025. 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KALA’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 (6.614) is normal, around the industry mean (17.368). P/E Ratio (0.000) is within average values for comparable stocks, (59.372). KALA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.445). Dividend Yield (0.000) settles around the average of (0.041) among similar stocks. P/S Ratio (0.000) is also within normal values, averaging (273.506).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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. KALA’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 95, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of ophthalmic treatments based on its mucosal penetrating product platform
Industry Biotechnology