Why Barchart’s Top Technical Analysis Expert Isn’t Adding This Hot Stock (Up 220%) to His Portfolio

• Calumet (CLMT) exhibits strong technical momentum, with shares setting a new all-time high on Friday, Sept. 18.
• Shares are up more than 220% over the past year.
• Analyst sentiment is divided with price targets ranging from $40 to $75.
• I remain cautious due to inconsistent future revenue and earnings expectations, despite exceptional recent price appreciation.

Today’s Featured Stock

Valued at $5.2 billion, Calumet (CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. 

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. CLMT checks those boxes. The Trend Seeker issued a new “Buy” signal on Aug. 10. The stock has gained 31.02% since that signal.

Barchart’s Technical Indicators for Calumet

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.

Calumet scored an all-time high of $59.64 on Sept. 18.

• Calumet has a Weighted Alpha of 247.72.
• CLMT has a 100% “Buy” opinion from Barchart.
• The stock has gained 220.64% over the past 52 weeks.
• Calumet has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $59.23 with a 50-day moving average of $47.36.
• CLMT had 10 highs and gained 17.25% in the last month.
• 60-month beta of 0.72.
• Relative Strength Index (RSI) is at 77.03.
• There’s a technical support level around $57.80.

Don’t Forget the Fundamentals

• $5.2 billion market capitalization.
• Revenue is projected to grow 19.21% this year but be down by 4.91% next year.
• Earnings are estimated to decrease by 466.48% this year but increase again by 123.51% next year.

Analyst and Investor Sentiment on Calumet

• The Wall Street analysts followed by Barchart give the stock 2 “Strong Buy” and 5 “Hold” opinions with price targets from $40 to $75.
• Value Line rates the stock “Average.”
• Morningstar thinks the stock is 36% overvalued with a fair value of $42.60.
• CFRA’s MarketScope rates the stock as “Hold.”
• 1,900 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• TipRanks’ analysts’ price target is $53.40.
• Short interest is 4.18% of the float with 3.71 days to cover the float.

The Bottom Line on Calumet

The stock was only featured because of the chart. Before I add a stock to my portfolio, I like to see analysts in agreement that there are going to be increases in both revenue and earnings in the future. I don’t see that here.

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 speculate 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.