The Unprecedented Rise of Evelo Biosciences Inc. (NASDAQ:EVLO)

The Unprecedented Rise of Evelo Biosciences Inc. (NASDAQ:EVLO)

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The Evelo Biosciences Inc. (EVLO) shares are trading at higher $4.90 and the avg recommendation for the stock is Moderate Buy.

To add more color to this target, the company’s high over the last year is $9.82 and the low is $3.01. Over the last 52 weeks, EVLO is down -50.10% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, EVLO reported a profit of $0.28 million. Evelo Biosciences Inc. also saw revenues increase to $23.26 million. In addition, EVLO has free cash flow of -$19.95 million as of 03-2020 The company’s EBITDA came in at -$22.77 million which compares well with its peers.

EVLO Return on Equity (ROE) is -125.90%, and its Return on Assets is -85.80%. All told, it is clear that, EVLO needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EVLO has a short ratio of 20.47 and outstanding shares of 32.25M.

Company Outlook

EVLO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.15 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.75. Evelo Biosciences Inc. EVLO also noted assets of $83.15 million at the end of the last quarter. Investors should also keep an eye on sector updates as EVLO has historically followed its peers on positive news.

All told, Evelo Biosciences Inc. EVLO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EVLO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Evelo Biosciences Inc. EVLO is now commanding a market cap of 152.29M and a float of 30.34M. EVLO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EVLO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in EVLO, either long or short, and we have not been compensated for this article.