When looking at a chart for bitcoin over the past year, you’ll see a steady fall that’s gotten us to where we are now. While the cryptocurrency reached almost $70k back in November of 2021, bitcoin is down almost 60% over the past year. Today, it sits at just $20k. And when you take a similar glance at companies that operate in the crypto space – such as CleanSpark – you’ll see the same trend.
CleanSpark is a company that focuses on sustainable Bitcoin mining. More specifically, they focus on solving modern energy challenges through advanced software. And while they certainly benefited from the peaks of Bitcoin, they’re currently battling through one of its valleys. CleanSpark (CLSK) has suffered greater losses this year than Bitcoin itself – down 70% in the past year. However, it appears that a reversal may be on the horizon – or at least, a means for stopping the bleeding.
This morning, CLSK was up almost 5% after news of a mining update for the month of August. The company was able to mine 395 Bitcoins in the period – up 109% from the same period a year ago. Their hash rate (a measure of the computing power on a cryptocurrency network) has more than tripled over the past year, and according to CEO Zach Bradford, the company as a whole is right on track to achieve its goals – despite a brutal year for the cryptocurrency market as a whole. Bradford states that their goal was to become a top-five publicly traded Bitcoin mining company. It’s safe to say they’ve accomplished this goal – though it remains to be seen how the remainder of the year will treat the bitcoin market as a whole, and CLSK as a company.
Whatever the case, investors are seeing a few days in a row of growth for this stock. It would appear that a trend is forming – so, is now the time to buy CleanSpark? Let’s take a look at what our stock forecasting system shows…
Is CLSK’s Excellent Upside Potential Enough to Earn a Buy Rating?
Our stock forecasting software provides investors like you with a simple, emotionless approach to picking and trading stocks. The VectorVest system compiles fundamental and technical analysis into three simple ratings that determine whether a stock is rated a buy, sell, or hold. These are Relative Value (RV), Relative Safety (RS), and Relative Timing (RT). These are displayed on a scale of 0.00-2.00 – with 1.00 being the average. Together, these three ratings make up the overall VST rating a stock is given. So – what’s the deal with CleanSpark?
First and foremost, it has excellent upside potential with an RV rating of 1.41. This shows the long-term price appreciation potential a stock has – projected up to three years out. Moreover, our system shows that CLSK is currently undervalued. However, that’s really where the good news ends. The RS rating of 0.65 is poor – suggesting an inconsistency and unpredictability in the company’s financial performance. Moreover, the stock has a poor timing score with an RT rating of 0.58. This shows that the stock is still experiencing a negative price trend. These three ratings average out to an overall VST rating of 0.91 – which is fair.
Want to see what our system rates this stock – either a buy, sell, or hold? The answer may surprise you. Get a free stock analysis to find out!
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VectorVest advocates buying safe, undervalued stocks, rising in price. CLSK may have excellent upside potential but is unsafe with a negative price trend still showing strength and magnitude.
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