Cheaper Or Expensive Than Peers? – Arena Pharmaceuticals, Inc. (ARNA), Southwest Airlines Co. (LUV)

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is expensive when one looks at the company’s price to sales ratio of 11.23 and compares it with other companies in the Biotechnology group. Its industry average valuation of 96.13 is significantly worse than the sector’s 5.42. In the past 13-year record, this ratio went down as low as 2.42 and as high as 85.95. Also, it is up from 70% of the total 706 rivals across the globe.

ARNA traded at an unexpectedly low level on 11/30/2017 when the stock experienced a 1.81% gain to a closing price of $30.99. The company saw 0.43 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 0.48 million shares a day, this signifies a pretty significant change over the norm.

Arena Pharmaceuticals, Inc. (ARNA) Analyst Gushes

Analysts are speculating a 71.02% move, based on the high target price ($53) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $36 price target, but the stock is already up 174.25% from its recent lows. However, the stock is trading at 0.13% versus recent highs ($31.38). Analysts believe that we could see stock price minimum in the $19 range (lowest target price), allowing for another -38.69% drop from its current position. Leading up to this report, we have seen a 10.56% rise in the stock price over the last 30 days and a 33.69% increase over the past 3 months. Overall, the share price is up 118.24% so far this year. Additionally, ARNA had a day price range of $30.43 to $31.38.

Arena Pharmaceuticals, Inc. (ARNA) Price Potential

Heading into the stock price potential, Arena Pharmaceuticals, Inc. needs to grow just 17.78% to cross its median price target of $36.5. In order to determine directional movement, the 50-day and 200-day moving averages for Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) are $27.26 and $21.98. Given that liquidity is king in short-term, ARNA is a stock with 36.74 million shares outstanding that normally trades 7.3% of its float. The stock price recently experienced a 5-day gain of 13.1% with 1.12 average true range (ATR). ARNA has a beta of 1.47 and RSI is 71.5.

Investors also need to beware of the Southwest Airlines Co. (NYSE:LUV) valuations. The stock trades on a P/S of 1.67, which suggests that the shares are not attractive compared with peers. The broad Regional Airlines industry has an average P/S ratio of 0.62, which is significantly better than the sector’s 9.8. In the past 13-year record, this ratio went down as low as 0.35 and as high as 1.9. Also, it is down from 84% of the total 74 rivals across the globe.

Southwest Airlines Co. (LUV)’s Lead Over its Technicals

Southwest Airlines Co. by far traveled 35.73% versus a 1-year low price of $47.0444. The share price was last seen 3.04% higher, reaching at $60.67 on 11/30/2017. At recent session, the prices were hovering between $58.9 and $61.51. This company shares are 9.05% off its target price of $66.16 and the current market capitalization stands at $35.97B. The recent change has given its price a 8.17% lead over SMA 50 and -5.78% deficit over its 52-week high. The stock witnessed 12.64% gains, 16.36% gains and 0.51% gains for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found LUV’s volatility during a week at 3.04% and during a month it has been found around 1.94%.

Southwest Airlines Co. (NYSE:LUV) Intraday Metrics

Southwest Airlines Co. (LUV) exchanged hands at an unexpectedly low level of 13.17 million shares over the course of the day. Noting its average daily volume at 5.03 million shares each day over the month, this signifies a pretty significant change over the norm.

Southwest Airlines Co. Target Levels

The market experts are predicting a 31.86% rally, based on the high target price ($80) for Southwest Airlines Co. shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $58 range (lowest target price). If faced, it would be a -4.4% drop from its current position. Overall, the share price is up 21.73% year to date.

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