Nutex Health Is a Rare, Undervalued Winner Amidst Market Turmoil

• Wall Street had another rough day. Major stocks like Tesla (TSLA) and Nvidia (NVDA) were down significantly. 
• Nutex Health (NUTX) stands out with a 100% technical “buy” signal and impressive gains.
• Analysts and investors are bullish on NUTX, with multiple “Strong Buy” ratings.

Another Bad Day on Wall Street

Everyone was still looking for the bottom, but today was not it. All five of the Top Trending Tickers on Barchart were down:

• SPDR S&P 500 ETF (SPY) (1.57%)
• Nasdaq QQQ Trust (QQQ) (1.80%)
• Nvidia (NVDA) (1.37%)
• Tesla (TSLA) (4.90%)
• Apple (AAPL) (4.98%)

I didn’t find a single S&P 500 Index ($SPX) stock that met my criteria so I had to dig a little deeper to find a chart I liked.

Today’s Featured Stock:

Valued at only $416 million, Nutex Health NUTX is a physician-led healthcare services and operations company with 20 hospital facilities in eight states. The company is a component of the Medical Services Sector.

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. NUTX checks those boxes. Since the Trend Seeker signaled a “buy” on April 8, the stock has gained 18.96%.

NUTX Stock Price vs. Daily Moving Averages:

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on rising volume.

Barchart Technical Indicators for NUTX Stock:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closes within 1% of its 52-week high, it won’t take much to hit another new high.

• Nutex has a 100% technical “buy” signal.
• The stock closed at $84.94 on April 8, which was its 52-week high 
• NUTX has a weighted alpha of +411.42.
• The stock has gained 643.13% over the past year.
• Trend Seeker “buy” signal intact.
• NUTX is trading above its 20-, 50- and 100-day moving averages.
• The stock has made 11 new highs and is up 90.19% in the last month.
• The 14-day Relative Strength Index is at 70.92%
• The technical support level at $80.31

Follow the Fundamentals:

Note the projected increases in both revenue and earnings.

• Trailing price/earnings (P/E) ratio of 7.73x.
• Pays no dividend.
• Revenue is expected to grow 14.29% this year 
• Earnings are estimated to decrease 24.34% this year

Analyst and Investor Sentiment on Nutex:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are bullish on this stock.

• Wall Street analysts issued two “Strong Buy” opinions on the stock with price targets between $60 and $75.
• Value Line gives the stock an above average rating.
• CFRA’s MarketScope gives the stock a “Buy” rating.
• Morningstar thinks the stock is 26% undervalued and comments: “Nutex Health Inc is assigned a 4-star quantitative star rating, reflecting our opinion that this share class offers a somewhat attractive opportunity for investors. The stock currently trades at a 26% discount to our quantitative fair value estimate of 102.38 USD per share; however, caution is warranted due to this estimate’s high uncertainty rating.”
• Only one investor is following the stock on Motley Fool and he thinks the stock will beat the market.
• 766 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Healthcare stocks like Nutex are drawing investor attention and this may be a ground-floor opportunity. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.