Neo Share price declined to new year-to-date lows of $13.54 on Monday before rising up marginally to trade at $13.75 at the time of writing. The shares were down by 2.42% at the time of writing, pilling up the losses to the previous session’s -2.96%. NeoGenomics, which specializes in cancer testing and research, has had a rough ride in the last week, and is on course to register the third successive week of losses. Furthermore, it is 16.4% below the level it was in February when Goldman Sachs gave it a “buy” rating.
Most analysts’ expectations forecast an average share price for NEO in the region of $18.00-$21.00. This means that the company is currently well below the forecast estimates, which could create a FUD sentiment around the stock ahead of the earnings release. With a Price to Sales ratio of 3x, the Neo share price is currently over the top. Furthermore, the company had an EPS of $0.03 in the last earnings released in February, beating the forecast estimate of -0.025.
The next earnings release is set for April 30th, and the earnings are expected to come in at -0.04. This is informed by the downward review of expected revenue from $152 million to $149 million. This will likely add to the downward pressure on Neo share price in the intervening period, as many investors are likely to sell. Having said that, NeoGenomics beat EPS and Revenue estimates for the last four earnings releases, underlining the fact that the stock could still be a good buy even while trading near YTD lows.
NEO share price faces resistance at the 13.88 pivot, with the sellers in control. This could see them break the support at 13.63 as long as action remains below the pivot. If that happens, the resulting momentum could propel movement to test the next support at 13.45. Alternatively, a move above 13.88 will favour control by the buyers, with the next target being the 14.07 resistance. An extension of control by the buyers could see further upward movement to test 14.30.