Leave The Frothy Market And Buy Surface Oncology, Inc. (SURF), Avid Bioservices, Inc. (CDMO)

3 analysts out of 4 Wall Street brokerage firms rate Surface Oncology, Inc. (NASDAQ:SURF) as a Buy, while 0 see it as a Sell. The rest 1 describe it as a Hold. SURF stock traded higher to an intra-day high of $4.9. At one point in session, its potential discontinued and the price was down to lows at $4.5024. Analysts have set SURF’s consensus price at $10, effectively giving it a 108.33% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $14 (up 191.67% from current price levels). SURF has a 0% ROE, lower than the 10.07% average for the industry. The average ROE for the sector is 15.25%.

It is expected that in Mar 2019 quarter SURF will have an EPS of $-0.44, suggesting a -141.9% growth. For Jun 2019 is projected at $-0.44. It means that there could be a 39.73% growth in the quarter. Yearly earnings are expected to rise by -460.61% to about $-1.85. As for the coming year, growth will be about -15.68%, lifting earnings to $-2.14. RSI after the last trading period was 53.96. SURF recorded a change of 16.79% over the past week and returned -44.06% over the last three months while the SURF stock’s monthly performance revealed a shift in price of -12.09%. The year to date (YTD) performance stands at 13.21%, and the bi-yearly performance specified an activity trend of -53.35% while the shares have moved 0% for the past 12 months.

Surface Oncology, Inc. (SURF) currently trades at $4.8, which is higher by 4.8% its previous price. It has a total of 26.22 million outstanding shares, with an ATR of around 0.37. The company’s stock volume dropped to 0.12 million, worse than 105.7 thousands that represents its 50-day average. A 5-day increase of about 16.79% in its price means SURF is now 13.21% higher on year-to-date. The shares had marked a $18.18 52-week high price and the 52 week low of $3.45. Overall, it has seen a growth rate of 0 over the last 12 months.

Avid Bioservices, Inc. (NASDAQ:CDMO) shares appreciated 0.97% over the last trading period, taking overall 5-day performance up to 7.51%. CDMO’s price now at $4.15 is greater than the 50-day average of $4.04. Getting the trading period increased to 200 days, the stock price was seen at $4.94 on average. The general public currently hold control of a total of 49.55 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 55.77 million. The company’s management holds a total of 11.62%, while institutional investors hold about 49.5% of the remaining shares. CDMO share price finished last trade 3.79% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -15.92%, while closing the session with 2.8% distance from 50 day simple moving average.

Avid Bioservices, Inc. (CDMO) shares were last observed trading -50.83% down since September 11, 2018 when the peak of $8.44 was hit. Last month’s price growth of 12.77% puts CDMO performance for the year now at 1.22%. Consequently, the shares price is trending higher by 80.43%, a 52-week worst price since Mar. 15, 2018. However, it is losing value with -38.97% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $3.78 and $3.96. The immediate resistance area is now $4.34 Williams’s %R (14) for CDMO moved to 59.63 while the stochastic %K points at 47.09.

CDMO’s beta is 2.62; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $-0.48 per share from its yearly profit to its outstanding shares. Its last reported revenue is $13.78 million, which was 102% versus $6.82 million in the corresponding quarter last year. The EPS for Jan 19 quarter came in at $-0.05 compared to $-0.28 in the year-ago quarter and had represented -82% year-over-year earnings per share growth. CDMO’s ROA is -19.9%, lower than the 10.98% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 10.6%.

Estimated quarterly earnings for Avid Bioservices, Inc. (NASDAQ:CDMO) are around $-0.03 per share in three months through April with $-0.01 also the estimate for July quarter of the fiscal year. It means the growth is estimated at 78.57% and 83.33%, respectively. Analysts estimate full-year growth to be 58%, the target being $-0.21 a share. The upcoming year will see an increase in growth by percentage to 138.1%, more likely to see it hit the $0.08 per share. The firm’s current profit margin over the past 12 months is -45%. CDMO ranks lower in comparison to an average of 8.81% for industry peers; while the average for the sector is 1.56%.