TLRY Stock: Technical Analysis Shows Potential for Price Bounce amid Market Volatility
StockInvest.us, 2 months ago
Technical Analysis
Analysing the data for Tilray Brands, Inc. (ticker: TLRY) reveals some key technical indicators.
The stock last closed at $2.40 on September 26, 2023, marking a decrease of $0.17 (or -6.61%) from its previous close. The trading day's high and low stood at $2.625 and $2.40, respectively.
TLRY's Relative Strength Indicator (RSI) 14 is at 34, showing that the stock is nearing oversold territory. This could mean that the sell-offs may soon slow down, leading to a potential upward price bounce.
TLRY’s 50 Day Moving Average stands at $2.49 and its 200 Day Moving Average is at $2.50. Both averages are above the current stock price, suggesting a bearish trend.
The 3-month Moving Average Convergence Divergence (MACD) at 0.15 signifies a positive momentum in the stock.
According to the Average True Range (ATR) of 10.30, the stock exhibits high volatility. Additionally, support is noted at $2.27 and resistance at $2.66.
Fundamental Analysis
The stock’s EPS is at -$2.22 and it has a negative PE ratio of -1.08, indicating a loss per share, reducing its attractiveness from a fundamental perspective. The market capitalization stands at $1.69 billion, and there are 703.26 million shares outstanding.
Changes in U.S. cannabis laws may potentially have positive effects on the performance of TLRY. News of pending legal reforms and cannabis downgrading from a Category 1 substance to Category 3 have fueled recent interest in the stock. Moreover, the firm's strategic move into the U.S. craft beer industry suggests positioning for potential growth areas in the future.
The Discounted Cash Flow (DCF) at $2.73, target consensus at $8.45, and median target at $6.68, although higher than the current share price, caution is needed as analysts also suggest low targets. The consensus rating signifies a "Buy" position but the individual ratings include 2 "Buys", 2 "Holds" and 1 "Sell".
Stock Price Prediction
Given the current market conditions and the potential for prosperous U.S. legal reforms, TLRY's stock price might experience some positive movement in the upcoming trading day, September 27, 2023, and throughout the next week. However, the oversold condition and negative EPS make it a speculative play.
Evaluation
Considering the mixed technical and fundamental indicators, the firm's positioning for potential growth, and the impact of external market conditions such as potential U.S. cannabis legal reforms, TLRY stock is advised to be a "Hold". A wait-and-see approach is necessary as while there are potential catalysts that may drive the price upward, the fundamental framework contains risks not to be overlooked. Investing now would be betting on the positive outcome of the legal reforms, and should be done with caution.
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