Is CareCloud (USA Stocks:CCLD) moving to revert?

The market is a voting machine in the short term, but a weighing machine in the long term. CareCloud (NASDAQ: CCLD), a key player in the Healthcare sector, specifically Health Care Equipment, is showing signs of a potential bullish reversal. Despite a slight dip with a Price Action Indicator of -0.03, the stock's 50 Day Moving Average stands at 1.3443, indicating a possible upward trend. The company's financial health is also promising, with a Net Income of $5.4M and Operating Income of $4.1M. The Change to Net Income of $3.2M further strengthens the company's financial position. Wall Street analysts seem to agree, with two strong buy recommendations and a target price of $3.83, significantly higher than the current Day Median Price of $1.21. With a Beta of 1.117, CareCloud offers a slightly higher risk-reward ratio, which could be attractive to more aggressive investors. The potential upside price of $7.06 further highlights the stock's growth potential. While the short ratio of 3.51 suggests some investors are betting against the stock, the decrease in Shares Short from 224.2K to 189.2K over the past month indicates a shift in sentiment. In the grand scheme of things, CareCloud appears to be a stock poised for a bullish reversal. Some traders may be overanalyzing the health care equipment & supplies sector, but it's prudent to consider CareCloud in the context of current market trends. As previously suggested, CareCloud is experiencing a downturn as shareholders become increasingly bearish due to heightened sector volatility. The company's performance has shown a slight correlation with the market over the past few months. Unstable key indicators could also signal potential long-term losses for CareCloud shareholders. The company is set to announce its earnings today, with the next financial report due on May 2, 2024.
Published over six months ago
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Reviewed by Rifka Kats

Four analysts have given CareCloud stock a consensus rating of 'Strong Buy'. This consensus is typically based on technical analysis, which uses price momentum, patterns, and trends derived from historical prices. The goal is to identify signals based on market sentiment and investors' perception of CareCloud's future value. Let's delve into some aspects of CareCloud's technical analysis.

Main Takeaways

From a technical standpoint, CareCloud (NASDAQ: CCLD) has been displaying certain promising signals that might suggest a bullish reversal in the offing. The stock's Mean Deviation of 5.43 indicates a significant price volatility, offering potential opportunities for investors. Moreover, CareCloud's 200 Day Moving Average (MA) stands at 1.68, higher than the current Last Price of 1.19. This could imply that the stock is currently undervalued and might witness an upward trend soon. However, it's crucial for investors to keep a watch on the Price Action Indicator which is slightly negative at -0.03, hinting at some downward pressure.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of CareCloud. In general, sophisticated investors focus on analyzing CareCloud stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build CareCloud's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of CareCloud's intrinsic value. In addition to deriving basic predictive indicators for CareCloud, many experienced traders also check how macroeconomic factors affect CareCloud price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does CareCloud Stands against Peers?

Analyzing CareCloud competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to CareCloud across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out CareCloud Competition Details

CareCloud Gross Profit

CareCloud Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CareCloud previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show CareCloud Gross Profit growth over the last 10 years. Please check CareCloud's gross profit and other fundamental indicators for more details.

Closer look at CareCloud Variance

CareCloud has current Variance of 62.37. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security.
A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance

 = 

SUM(RET DEV)2

N

 = 
62.37
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare CareCloud Variance to its closest peers:
CCLD
MD
CI
GH
VEEV
CCLD62.373325786945976
MD6.14
CI1.52
GH13.28
VEEV2.48
"Buy low, sell high" is a common adage in the world of finance, and it may be applicable to CareCloud (NASDAQ: CCLD) at this juncture. The Health Information Services company, with a market capitalization of $18.89M, is currently trading near its 52-week low of $0.68, well below its 200-day moving average of $1.6787. Despite a negative return on assets and equity, the firm's solid net income of $5.43M and positive cash flow from operations of $21.15M suggest underlying financial health. Moreover, with a short percent of just 0.018 and a decrease in shares shorted from the prior month, it appears that short sellers are less bearish on the stock. Given these factors, CareCloud may indeed be poised for a bullish reversal. .

Our take on CareCloud small dip

The recent decrease in CareCloud's mean deviation to 5.43 suggests a slight reduction in the stock's volatility, indicating a potentially safer investment opportunity. This minor dip in the company's stock should not be alarming. Instead, it offers a chance for investors to consider adding CareCloud's shares to their portfolios. The company's strong business model and promising growth prospects make it an attractive option for both short-term traders and long-term investors. However, CareCloud, a potential penny stock, exhibits above-average volatility. Investors should carefully evaluate CareCloud to ensure their market timing strategies align with expectations about its volatility. While CareCloud may be a good investment, many penny stocks are speculative and subject to artificial price hype. Investors are advised to be aware of signals such as email spams, unreported promotions, sudden news releases, and volume upswings. Also, check the backgrounds of current and past company officers before investing in high volatility instruments, penny stocks, or microcap equities.
While it's possible to profit from CareCloud if you time your entry and exit perfectly, remember that artificially hyped penny stocks usually cannot maintain their increased share price for long. The only way to increase shareholder value is through legitimate performance backed by solid fundamentals. Despite the recent 1 percent dip, CareCloud (CCLD) remains a compelling investment opportunity. Analysts are bullish on the stock, with 2 strong buys and 1 hold rating. The possible upside price of $7.06 indicates significant growth potential, well above the current valuation market value of $1.19. Even the analyst's lowest estimated target price stands at $4.53, suggesting a substantial upside. The valuation real value of $2.12 further underlines the stock's potential. However, investors should be mindful of the possible downside price of $0.0119. Overall, the consensus is a strong buy, indicating that CareCloud could be a valuable addition to a diversified portfolio. .

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of CareCloud. Please refer to our Terms of Use for any information regarding our disclosure principles.

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