Last Updated: 12 Nov 2024
Executive Summary
Outset Medical Inc. (OM) is a medical technology company developing a hemodialysis system for dialysis. The company has a market capitalization of $402.99 million and its latest stock price is $0.85. Analysts have a consensus target price of $3.29 and rate the stock as a "Hold". The company's fundamentals are weak, with negative earnings and margins. However, the technical analysis suggests a potential for a short-term rally.
Company Overview
Outset Medical was founded in 2004 and is headquartered in San Jose, California. The company's mission is to improve the lives of dialysis patients by providing a more convenient and effective treatment option. Outset Medical's Tablo Hemodialysis System is a portable, self-contained hemodialysis machine that can be used in the home or in a clinical setting. The system is designed to be easy to use and maintain, and it offers a number of advantages over traditional hemodialysis machines.
Fundamental Analysis
Outset Medical's financial performance has been weak in recent years. The company has reported negative earnings and margins for the past several quarters. In the most recent quarter, the company reported a loss per share of $2.74 and an operating margin of -1.123%. The company's revenue growth has also been slowing, with quarterly revenue growth of -0.24% in the most recent quarter.
Technical Analysis
The technical analysis of Outset Medical's stock suggests a potential for a short-term rally. The stock is currently trading below its 50-day and 200-day moving averages, but it has recently formed a bullish double bottom pattern. This pattern suggests that the stock may be poised for a rebound.
Short Term Outlook
In the short term, Outset Medical's stock could rally to its 50-day moving average of $0.577. If the stock can break above this level, it could continue to rally to its 200-day moving average of $2.397. However, if the stock falls below its recent low of $0.435, it could continue to decline.
Long Term Outlook
In the long term, Outset Medical's stock could be a good investment if the company can improve its financial performance. The company's Tablo Hemodialysis System has the potential to revolutionize the dialysis market, and if Outset Medical can successfully commercialize the system, it could become a major player in the industry.
Analyst Recommendations
Analysts have a consensus target price of $3.29 for Outset Medical's stock. Two analysts rate the stock as a "Strong Buy", two rate it as a "Buy", and three rate it as a "Hold". No analysts rate the stock as a "Sell" or "Strong Sell".
