Exelixis, a player in the biotechnology sector, is currently catching the eye of investors who are keen on spotting potential gains. The stock's technical indicators present a mixed bag. The 50-day moving average stands at 26.61, slightly above the 200-day moving average of 23.50, suggesting a bullish trend in the short term. However, with a PEG ratio of 2.20, the stock might be considered overvalued relative to its growth prospects. The short interest ratio of 5.04 indicates a moderate level of skepticism among investors, though the overall analyst consensus leans towards a "Buy." With target prices ranging from 23.44 to 28.59, there's room for upward movement, but caution is advised given the potential downside to 27.03. Balancing these factors, it might be a good moment to reassess your position in Exelixis, especially if you're aiming to capitalize on its current momentum. Although some millennials might overlook the biotechnology sector, it's worth highlighting Exelixis due to its promising prospects. Recently, the company has been gaining traction as institutional investors grow increasingly confident in its future. Over the past few months, Exelixis's performance has shown a noticeable correlation with broader market trends. Both technical and fundamental indicators suggest that long-term gains could be on the horizon for its investors. Exelixis is set to release its earnings report today.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Exelixis. In general, sophisticated investors focus on analyzing Exelixis stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Exelixis's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of Exelixis's intrinsic value. In addition to deriving basic predictive indicators for Exelixis, many experienced traders also check how macroeconomic factors affect Exelixis price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Exelixis' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Exelixis's Liquidity
Exelixis
financial leverage refers to using borrowed capital as a funding source to finance Exelixis ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Exelixis financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Exelixis' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Exelixis' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Exelixis's total debt and its cash.
Exelixis Gross Profit
Exelixis Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Exelixis previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Exelixis Gross Profit growth over the last 10 years. Please check Exelixis'
gross profit and other
fundamental indicators for more details.
Closer look at Exelixis Mean Deviation
Exelixis has current Mean Deviation of 1.43. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity.
The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV)N |
| = | 1.43 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Exelixis |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Exelixis Mean Deviation to its closest peers:
| EXEL | 1.4294257483930213 |
| HALO | 1.74 |
| XFOR | 3.44 |
| PDSB | 3.07 |
| KOD | 3.37 |
Timing is everything, especially when it comes to investing. Exelixis, trading on the NASDAQ, has shown a steady performance with a 52-week high of $29.75, suggesting potential room for growth as it currently hovers around its 50-day moving average of $26.61. With a robust current ratio of 6.08X, the company demonstrates strong liquidity, which could be appealing to investors looking for stability in the volatile biotechnology sector. Additionally, Exelixis boasts a market capitalization of $8.26 billion, reflecting its significant presence in the healthcare industry. Given these factors, it might be worth reevaluating your position in Exelixis to capitalize on potential gains..
Another 3 percent rise for Exelixis
Exelixis has recently experienced a significant boost, with its stock rising by 3%, signaling increased investor confidence. This upward trend is supported by its impressive risk-adjusted performance of 1.24, indicating that Exelixis is not only achieving returns but doing so with well-managed risk compared to the broader market. Investors appear to appreciate this balance, driving the stock higher in anticipation of continued strong performance. As of October 29, Exelixis shows a downside deviation of 1.33, a mean deviation of 1.43, and a coefficient of variation of 729.2. By analyzing historical prices and volume patterns, you can predict the stock's future direction.
Check Exelixis's Treynor ratio and the relationship between standard deviation and downside variance to assess if the current price of $28.50 per share is justified. With a Jensen alpha of 0.3014, it's important to review Exelixis's market performance to ensure its sustainability moving forward.Considering the current landscape for Exelixis, it's clear that the stock presents a mixed bag of opportunities and risks. With an analyst consensus leaning towards a "Buy" and a highest estimated target price of $28.59, there is potential for growth. However, the presence of 6 holds and 2 sells among analysts suggests some caution is warranted. The valuation market value stands at
28.5, which aligns closely with the hype value of
28.4, indicating that the stock might be fairly priced at the moment. Investors should weigh these factors carefully, considering both the potential upside and the inherent risks, before making a decision on whether to stay invested or explore other opportunities..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nico Santiago do not own shares of Exelixis. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com