Medical device company Tandem Diabetes Care (Nasdaq: TNDM) had an incredible run for the first eight and a half months of 2018. The stock jumped from $2.36 at the start of the year to a high of $52.55 in September. That is a gain of over 2,100%.
After hitting that all-time high in September, the stock has retreated slightly and it dipped down to a low of $26.40 in November. After dropping down to the November low, the stock has made several attempts to move back up, but it seems to be hitting resistance in the $38 area. The stock has moved above that price, but it hasn’t been able to close a day above it on three different attempts.
You can see on the chart the three attempts in just over a month and now the stock is overbought based on the daily stochastic readings. The stochastic readings also just made a bearish crossover on Wednesday.
Something that could be holding the stock back at this point is its fundamental indicators. The company has yet to turn a profit and it is currently operating at a profit margin of -67.9%.
Biotech and pharma companies are different in how they are valued by investors, but at some point the company has to start making money in order to justify the stock price. I’m not sure what that point is, but it seems like investors may have gotten ahead of themselves with Tandem when they ran it up so high last year.
The Aroon Indicator for TNDM entered a downward trend on June 02, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 109 similar instances where the Aroon Indicator formed such a pattern. In of the 109 cases the stock moved lower. This puts the odds of a downward move at .
The Moving Average Convergence Divergence Histogram (MACD) for TNDM turned negative on May 04, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TNDM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 18 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TNDM advanced for three days, in of 313 cases, the price rose further within the following month. The odds of a continued upward trend are .
TNDM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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. TNDM’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 85, placing this stock better than average.
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. TNDM’s price grows at a lower 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 significantly overvalued 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 (4.726) is normal, around the industry mean (25.286). P/E Ratio (666.667) is within average values for comparable stocks, (143.072). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.656). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (2.004) is also within normal values, averaging (53.674).
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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer and manufacturer of medical devices for the treatment of diabetes
A.I.dvisor indicates that over the last year, TNDM has been loosely correlated with ZBH. These tickers have moved in lockstep 53% of the time. This A.I.-generated data suggests there is some statistical probability that if TNDM jumps, then ZBH could also see price increases.
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