After years of delays, it appears Virgin Galactic (SPCE) is prepared to embark on its first commercial flight into space later this month. Sometime between June 27 and June 30th, a team of 3 Italian researchers will lift off onboard Galactic 01.
Pending the company’s first successful commercial space tourism flight, monthly flights will follow thereafter starting in August. That means you too can take a trip to space and back – assuming you are a private astronaut with $450k to spend on your ticket, of course.
The company has been burdened with launch delays up to this point, which has led to investors stirring with anticipation – and even frustration at some points. Since the company first began teasing its first flight launch last year, they’ve lost more than ⅔ of market value.
SPCE stock peaked at around $55 per share in June of 2021. But since then, it has seen low points of just $3.15 per share. Today, it sits at $4.74. And with the news of the first scheduled flight later this month, the stock is climbing higher and higher. It skyrocketed more than 35% on the news alone before settling back down over the past few days.
There’s no question that this stock has hype behind it now – leading the charge for commercial space exploration. That being said, you’re wondering whether it’s worth buying in early and adding SPCE to your portfolio.
We’ve put the stock under a microscope by analyzing it through the VectorVest stock forecasting software and despite the impressive price trend that has formed in the past few days, we see 2 things that we suspect will keep this stock grounded in the long term….
Despite Excellent Timing, SPCE Has Very Poor Upside Potential and Safety
The VectorVest system simplifies your trading strategy by telling you what to buy, when to buy it, and when to sell it. You’re given all the insights you need to arrive at these decisions in just 3 ratings: relative value (RV), relative safety (RS), and relative timing (RT).
Each rating sits on a scale of 0.00-2.00, with 1.00 being the average. This makes interpretation quick and easy - just pick stocks with ratings appreciating above the average to win more trades with less work! Or, better yet, you can follow the clear buy, sell, or hold recommendation the system offers based on these 3 ratings. As for SPCE, here’s what we’ve uncovered:
- Very Poor Upside Potential: The RV rating is computed through a comparison of a stock’s long-term price appreciation potential (three years out) to AAA corporate bond rates & risk. As for SPCE, the RV rating of 0.30 is very poor. Plus, the stock is overvalued right now - with a current value of just $1.13/share.
- Very Poor Safety: Moreover, SPCE has very poor safety - as confirmed by the RS rating of 0.40. This is calculated through an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, and business longevity.
- Excellent Timing: The one thing this stock has going for it right now is excellent timing, with an RT rating of 1.52. This indicates a strong positive price trend has formed. It’s calculated based on the direction, dynamics, and magnitude of the stock’s price movement day over day, week over week, quarter over quarter, and year over year. Investors just need to determine - will this trend hold, or is it a momentary blip on the radar?
The overall VST rating of 0.98 is just below the average - but considered fair nonetheless. That being said, should you buy, sell, or hold SPCE right now? You can get a clear recommendation on your next move at VectorVest, allowing you to make your decision confidently. Get a free stock analysis today to find out what you should do with this opportunity!
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VectorVest advocates buying safe, undervalued stocks, rising in price. While the hype around SPCE has stirred excitement and led to excellent timing for the stock, it still has very poor upside potential and safety.
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