Is achr a buy at 9.44


Aime
Archer Aviation (ACHR) does not appear to be a strong buy at the current price of $9.44. Here's why:
- Technical Indicators Suggest Caution: The stock's MACD is negative at -0.57, and its RSI is at 26.07, indicating it may be oversold1. However, the KDJ is at -1.9, which could suggest a potential reversal1. The Bollinger Bands show a mid-value at $10.55, with an upper value at $12.88, suggesting a potential for the stock to move higher but also a significant resistance level2.
ACHR Trend
- Moving Averages Are Bearish: The 5-day moving average is $9.72, the 10-day is $10.23, and the 20-day is $10.55, all of which are higher than the current price, indicating a short-term downward trend3. The 50-day moving average is $8.80, and the 200-day is $6.96, suggesting a potential for a longer-term trend to be bullish if the stock were to break above these averages3.
ACHR Trend
- Support and Resistance Levels: The stock has support at $9.34 and resistance at $9.77, which could be indicative of a narrow trading range4.
ACHR Trend
- Analyst Ratings and Price Targets: The consensus rating is "Strong Buy" with an average price target of $12.88, which is significantly higher than the current price5. However, it's important to consider that price targets are based on analysts' opinions and market conditions, and they may not always be accurate.
- Fundamental Analysis: The company has a negative diluted EPS of -$0.17 and has reported a net income of -$93.4 million, with a net income growth rate of 19.83%6. The 3-year EPS CAGR is 3.72%, and the 3-year revenue CAGR is not available7. These figures suggest that while there is some growth potential, the company is currently unprofitable and has significant financial challenges to overcome.
ACHR Net Income YoY, Diluted EPS YoY
- Market Sentiment and Recent Performance: The stock has experienced volatility, with a recent dip due to short-seller claims that were followed by a stabilization as the market focused on the company's operational milestones8. There is also a recent gapping up of the stock, which could indicate a positive reaction to recent news9.
In conclusion, while there is some potential for growth as indicated by the analyst ratings and the Bollinger Bands, the current technical indicators and the company's financials suggest that ACHR may not be a strong buy at the current price of $9.44. Investors should consider their risk tolerance and investment horizon before making a decision. It's also important to monitor the stock's performance closely, especially in light of any new developments or news that could impact the stock's trajectory.
Source:
1.
ACHR MACD, RSI, KDJ
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