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NeoGenomics’ share price dropped to a new year-to-date low of $13.54 on Monday before slightly recovering to $13.75 at the time of writing. The shares were down 2.42%, adding to the previous session’s 2.96% loss. NeoGenomics, a company specializing in cancer testing and research, has had a tough week and is on track to register its third consecutive week of losses. The stock is now 16.4% below its February level when Goldman Sachs gave it a “buy” rating.
Most analysts predict an average share price for NEO in the range of $18.00 to $21.00, indicating that the current price is well below expectations. This discrepancy could create fear, uncertainty, and doubt (FUD) around the stock ahead of the upcoming earnings release. With a Price-to-Sales ratio of 3x, NeoGenomics’ share price appears high. However, the company reported an EPS of $0.03 in its last earnings release in February, surpassing the forecasted -$0.025.
The next earnings release is scheduled for April 30th, with earnings expected to come in at -$0.04. This projection is based on a downward revision of expected revenue from $152 million to $149 million, which may add to the downward pressure on NeoGenomics’ share price, leading some investors to sell. Despite this, NeoGenomics has consistently beaten EPS and revenue estimates in the last four earnings releases, suggesting that the stock could still be a good buy even at its current lows.
The NEO share price faces resistance at the $13.88 pivot, with sellers currently in control. If the price remains below this pivot, it could break the support at $13.63, potentially leading to further declines to test the next support at $13.45. On the other hand, a move above $13.88 would shift control to the buyers, with the next target being the $14.07 resistance. If buyers extend their control, the stock could move further upward to test $14.30.