Will holding Palisade (USA Stocks:PALI) be justified in August 2024?

Palisade Bio has a beta of 3.6342, indicating potential outperformance if the market rises. Conversely, in a declining market, it may underperform. Beta helps investors gauge if Palisade Bio's movements align with the broader market and assess its volatility or risk relative to a selected benchmark. Essentially, if Palisade's deviation from the market is minimal, it adds little risk to a portfolio but also doesn't significantly boost expected returns.

Main Takeaways

Palisade Bio (Ticker: PALI), a clinical-stage biopharmaceutical company, currently trades at a last price of $4.49, below its 200-day moving average of $7.07. Despite the company's negative total risk alpha of -0.02 and a significant maximum drawdown of 65.73%, the stock holds a potential upside of 11.3% by August 2024. However, investors should be aware of the company's EPS estimate for the current quarter, which indicates a loss of $4.8.
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Reviewed by Michael Smolkin

Palisade Bio (Ticker: PALI), a NASDAQ-listed healthcare firm specializing in biotechnology, is showing potential for significant upside by August 2024. Despite the company's estimated EPS for the next year being a loss of 8.81, and the next quarter being a loss of 4.5, analysts have an overall consensus of a 'Strong Buy' on the stock. This consensus is further supported by the fact that the number of analysts issuing a 'Buy' rating stands at 1, with another analyst issuing a 'Strong Buy' rating. The highest estimated target price among analysts is $17.76, which suggests a considerable upside from the day's typical price of $4.45. Moreover, the Wall Street target price for PALI stands at a whopping $33.75, indicating substantial potential for growth. The stock's 50-day moving average is $5.44, and its 200-day moving average is $7.07, both higher than the current price, further indicating a possible upward trend. The short percent is relatively low at 0.0293, with a short ratio of 0.79, suggesting that the market sentiment is bullish. The shares short stand at 27.1K, which is not significant considering the market facilitation index of 0.18. Given these factors, PALI stock shows a promising upside potential by August 2024. Currently, Palisade Bio's Net Debt to EBITDA ratio is on an upward trend compared to previous years. The company's Enterprise Value over EBITDA is projected to rise to 0.66, while its Market Cap is expected to fall below 4.4 million. This article will evaluate Palisade Bio as a potential addition to your existing portfolio and explore why it could be a game-changer for traders.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Palisade Bio. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Palisade Bio

Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Palisade Bio's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Palisade Bio. Your research has to be compared to or analyzed against Palisade Bio's peers to derive any actionable benefits. When done correctly, Palisade Bio's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Palisade Bio.

How important is Palisade Bio's Liquidity

Palisade Bio financial leverage refers to using borrowed capital as a funding source to finance Palisade Bio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Palisade Bio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Palisade Bio's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Palisade Bio's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Palisade Bio's total debt and its cash.

Palisade Bio Gross Profit

Palisade Bio Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Palisade Bio 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 Palisade Bio Gross Profit growth over the last 10 years. Please check Palisade Bio's gross profit and other fundamental indicators for more details.

An Additional Perspective On Palisade Bio

The recent indifference towards the small price fluctuations of Palisade Bio may encourage traders to take a closer look at the company as it is trading at a share price of 4.49 on very low momentum in trading volume. The company executives did not add any value to Palisade Bio investors in June. However, most investors can still diversify their portfolios with Palisade Bio to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.91.
The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Palisade Bio partners.

Returns Breakdown

Return On Tangible Assets(0.92)
Return On Capital Employed(1.18)
Return On Assets(0.92)
Return On Equity(1.14)
As Warren Buffet once said, "Risk comes from not knowing what you're doing." Palisade Bio (Ticker: PALI), a clinical-stage biopharmaceutical company, is certainly not a stock for the faint-hearted, with a high probability of bankruptcy at 96.00%. However, it also presents a potential upside of 11.3 by August 2024. Despite the company's negative EPS estimate for the next year at -8.81, indicating potential losses, the target price stands at a promising $33.75. With a beta of 1.3, the stock is more volatile than the market, which could mean higher potential returns for risk-tolerant investors..

Our perspective of the recent Palisade Bio surge

Palisade Bio's recent stock surge reflects its robust risk-adjusted performance of 0.01, indicating effective risk management and reasonable returns. This positive performance, driven by strong fundamentals and strategic initiatives, has boosted investor confidence. We recommend a bullish stance on Palisade Bio due to its potential for further growth and value creation. The company's stock has shown above-average volatility, which can be beneficial for timing the market. However, bear markets' heightened volatility can negatively impact Palisade Bio's stock price, causing investor stress as share values drop.
This often prompts investors to rebalance their portfolios by purchasing diverse financial instruments as prices decline.In conclusion, while Palisade Bio, Inc. (USA Stocks: PALI) has recently seen a price surge, the justification for this increase may not be entirely clear. Despite the company's focus on developing therapeutics for inflammatory bowel diseases, the market valuation of $4.49 billion may not align with the real value of $7.32 billion. Furthermore, with only one analyst giving a strong buy recommendation and a target price estimated value of $16, which is lower than the highest estimated target price of $17.76, investors should exercise caution. The fiscal year end in December may provide more clarity on the company's financial health and potential for growth..

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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 Gabriel Shpitalnik do not own shares of Palisade Bio. Please refer to our Terms of Use for any information regarding our disclosure principles.

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