CareDx Stock Is Up 300% Over the Past Year. Here’s How Much Upside Is Left.

• CareDx (CDNA) has surged 300% over the past year, driven by robust technical momentum and strong buy signals.
• CDNA is rated a “Strong Buy” by several analysts, with consensus price targets suggesting up to 12% further upside.
• Revenue is projected to grow 30.38% this year, with earnings expected to rise 109.19%, supporting the bullish outlook.
• Technical indicators remain bullish, but high volatility and a trailing price-earnings ratio highlight speculative risk.

Today’s Featured Stock

Valued at $2.42 billion, CareDx (CDNA) is a commercial stage company. It develops, markets, and delivers a diagnostic surveillance solution for heart transplant recipients. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CDNA checks those boxes. The Trend Seeker issued a new “Buy” signal on April 17. Since then, the stock has gained 122.39%.

Barchart’s Technical Indicators for CareDx

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.

CareDx scored a 3-year high of $49.76 on Aug. 3.

• CareDx has a Weighted Alpha of 229.37.
• CDNA has a 100% “Buy” opinion from Barchart.
• The stock has gained 298.83% over the past 52 weeks.
• CareDx has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $47.05 with a 50-day moving average of $31.30.
• CDNA has made 7 new highs and gained 65.54% over the past month.
• 60-month beta of 2.39.
• Relative Strength Index (RSI) is at 73.62.
• There’s a technical support level around $45.26.

Don’t Forget the Fundamentals

• $2.42 billion market capitalization.
• 263.59x trailing price/earnings ratio
• Revenue is predicted to grow 30.38% this year and another 5.82% next year.
• Earnings are estimated to increase by 109.19% this year and an additional 11.68% next year.

Analyst and Investor Sentiment on CareDx

• The Wall Street analysts followed by Barchart give the stock 5 “Strong Buy” and 3 “Hold” opinions with price targets between $40 and $64.
• Value Line rates the stock “Average.”
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is 12% overvalued with a fair value of $41.66.
• 7,190 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.” They also rate it the No. 1 Biotech stock.
• Short interest is 11.96% of the float with 7.76 days to cover the float.

The Bottom Line on CareDx

CareDx has enjoyed extremely upward price appreciation. Analysts’ consensus is that although the stock is still rated a buy, it has about 12% room to still appreciate.

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.

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.