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IonQ, Inc. is a company in the quantum computing market that is not yet profitable but is seen as a potential leader and a good long-term bet, according to analysts, though its high RSI value and volatility warrant caution from investors (as of September 6, 2023).
Fundamental Analysis
IonQ, Inc. (NYSE: IONQ) closed at $19.58 on September 6, 2023, with a change of 3.22%. The company's market cap is approximately $3.54 billion, with 202.59 million outstanding shares. IonQ, like others in its field, is not yet profitable, as indicated by its earnings per share (EPS) of -$0.58 and its negative price-to-earnings (PE) ratio of -30.16.
The consensus from stock predictors is a "Buy," with five analysts rating it a "Buy" and three calling it a "Hold." It's important to note that no experts are suggesting to sell or strongly sell this stock. However, it's notable that the analysts' consensus target price of $11.33 is significantly less than the closing price of $19.58.
Recent news records emphasize that IonQ is seen as a potential leader in the growing and revolutionary quantum computing market. However, it is an early-stage company lacking profitability and free cash flow. Accordingly, IonQ could be a good long-term bet but investors should be aware of the associated risks.
Technical Analysis
Using various technical indicators, the relative strength index (RSI) is at 79. This high RSI value may suggest that IonQ's stock is currently in overbought territory, potentially indicating a price correction.
Both the 50-day moving average ($15.33) and the 200-day moving average ($8.25) are below the current price which typically signals a bullish trend. Conversely, a negative 3-month moving average convergence divergence (MACD) of -0.69 could imply short-term bearishness.
The stock's average true range (ATR), a measure of volatility, is high at 7.55. Given the high volatility, stop-loss order may be crucial for investors and currently set at $18.88. The stock's current support level is $15.71, and the resistance level is $19.86.
Prediction and Evaluation
The discounted cash flow (DCF) value of IonQ's stock stands at $17.71, which is lower than the closing price of $19.58. However, the DCF alone shouldn't be the basis of investment decisions as it is just one metric and making financial decisions require a comprehensive understanding.
Given the data, it's difficult to predict the movement of IonQ's stock price for the next trading day and the upcoming week. The high RSI value suggests that the stock could be due for a correction, but the positive trend shown by the moving averages might support a continued uptrend.
With all data points considered, a '/Hold' rating is recommended for IonQ stock at the moment. While the consensus from stock predictors is to buy, it's crucial to note the currently high RSI and the high volatility inherent to IonQ's stock. Therefore, one should exercise caution and closely monitor this stock before making any investment decisions.
