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Based on technical and fundamental analyses as well as recent positive news, Lucid Group's stock is predicted to increase slightly in the next trading day (June 27, 2023) and can be categorized as a potential Buy, but investors should exercise caution and monitor the stock in the future.
Introduction
Lucid Group, Inc. (LCID) is an electric vehicle (EV) company listed on the NASDAQ exchange, and specializes in designing, manufacturing, and selling luxury electric vehicles. In this report, we will analyze Lucid Group's stock performance from both technical and fundamental perspectives to derive informed predictions about its future stock performance, as well as provide a final evaluation in terms of whether the stock is a Sell, Hold, or Buy.
Technical Analysis
As of June 26, 2023, Lucid's stock closed at $5.55, a 1.46% increase from its previous close. The stock's 52-week high is $21.78, while its 52-week low is $5.46. The stock's Relative Strength Index (RSI14) stands at 32, indicating that it is slightly oversold. The stock is currently trading below both its 50-day moving average of $7.09 and its 200-day moving average of $9.64, suggesting a downtrend.
The stock's MACD (3-month) value is -0.46, further indicating downward momentum. However, the stock's recent price change may create a potential reversal in its downtrend, as recent news highlights positive developments within the company.
Fundamental Analysis
Lucid Group's market capitalization is estimated at $11.14 billion, and the company has generated a negative earnings per share (EPS) of -$1.43. The company's price-to-earnings (PE) ratio also stands at -3.88, indicating that investors are expecting the company's earnings to improve in the future.
Recent news pertaining to Lucid Group include a partnership with British automaker Aston Martin, resulting in more than $450 million in cash and stock for the EV company. Furthermore, Lucid's stock price has seen a surge after it was announced that the Saudi Public Investment Fund purchased 265,693,703 shares at an average price of $6.83 each. These developments suggest that the company's fundamental outlook remains positive, despite its current downtrend.
Analysts' price targets range from as low as $12 to as high as $36, with a consensus target of $20.20 and a median target of $18. The discounted cash flow (DCF) is calculated to be $6.58, indicating potential undervaluation at its current price.
Predictions
Based on the technical and fundamental analysis provided, it is predicted that Lucid Group's stock price might see a slight increase in the next trading day (June 27, 2023) due to the recent positive news and slightly oversold RSI. For the upcoming week, the stock's performance will likely be influenced by market sentiment regarding EVs and the company's partnership with Aston Martin.
Considering the stock's current price and the discounted cash flow, along with the overall positive news surrounding the company, Lucid Group could be viewed as a potential Buy. However, it is crucial to monitor both the technical and fundamental aspects of the stock in the future to make informed investment decisions.
Final Evaluation
Taking into account the stock's technical and fundamental analysis, as well as the predictions derived from the given data, Lucid Group's stock can be categorized as a Buy. This recommendation is based on the stock's current valuation and recent positive developments. However, investors should exercise caution and monitor the stock for any changes in its technical and fundamental outlook.
