Gaotu Techedu Inc. (NYSE: GOTU)’S Stock Adds 6.71%, But It May Be Worth Investing In

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Gaotu Techedu Inc. (NYSE:GOTU) price closed higher on Friday, April 29, jumping 6.71% above its previous close.

A look at the daily price movement shows that the last close reads $1.49, with intraday deals fluctuated between $1.56 and $1.68. The company’s 5Y monthly beta was ticking -1.19. Taking into account the 52-week price action we note that the stock hit a 52-week high of $35.20 and 52-week low of $1.26. The stock subtracted -11.67% on its value in the past month.

Gaotu Techedu Inc., which has a market valuation of $382.90 million, is expected to release its quarterly earnings report Mar 03, 2022 – Mar 07, 2022. Analysts tracking GOTU have forecast the quarterly EPS to grow by 0.13 per share this quarter, while the same analysts predict the annual EPS to hit -$1.19 for the year 2022 and up to -$0.18 for 2022. In this case, analysts estimate an annual EPS growth of -58.70% for the year and 84.90% for the next year.

On average, analysts have forecast the company’s revenue for the quarter will hit $437.2 million, with the likely lows of $323.43 million and highs of $550.98 million. The average estimate suggests sales growth for the quarter will likely rise by 50.20% when compared to those recorded in the same quarter in the last financial year. Staying with the analyst view, there is a consensus estimate of $1.17 billion for the company’s annual revenue in 2021. Per this projection, the revenue is forecast to grow 5.70% above that which the company brought in 2021.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give GOTU a short term outlook of 100% Sell on average. Looking at the stock’s medium term indicators we note that it is averaging as a 100% Sell, while an average of long term indicators are currently assigning the stock as 100% Sell.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 2 analysts have assigned GOTU a recommendation rating as follows: 0 rate it as a Hold; 0 advise Buy while 0 analyst(s) assign an Overweight rating. 1 analyst(s) have tagged the Gaotu Techedu Inc. (GOTU) stock as Underweight, with 1 recommending Sell. In general, analysts have rated the stock Sell, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

The overview shows that GOTU’s price is at present -2.81% off the SMA20 and -10.44% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 46.51, with weekly volatility standing at 7.33%. The indicator jumps to 7.41% when calculated based on the past 30 days. Gaotu Techedu Inc. (NYSE:GOTU)’s beta value is holding at 0, while the average true range (ATR) indicator is currently reading 0.14. Considering analysts have assigned the stock a price target range of $8.22-$13.33 as the low and high respectively, we find the trailing 12-month average consensus price target to be $10.78. Based on this estimate, we see that current price is roughly -416.98% off the estimated low and -738.36% off the forecast high. Investors will no doubt be excited to see the share price fall to $10.78, which is the median consensus price, and at that level GOTU would be -577.99% from current price.

An analysis of the Gaotu Techedu Inc. (NYSE:GOTU) stock in terms of its daily trading volume indicates that the 3-month average is 4.97 million.

Current records show that the company has 256.84M in outstanding shares. The percentage share held by institutions stands at 35.30%. But the -18.04% downside, the stock’s price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.