MED is now extremely oversold with an RSI just above 20. After missing earnings last Friday, what's notable is that traders did buy the dip and we got a green candle on the day. We believe this is a sign that MED is now too cheap to ignore. MED is now trading at just 12x earnings and a PEG of 0.62.Medifast (NYSE:MED) closed down 27% on the heels of its Q3 report. Highlights:
Revenue: $190.1M (+36.5%).
Net income: $15.9M (+15.4%); EPS: $1.32 (+15.8%).
Q4 guidance: Revenue: $157M - 167M; EPS: $1.03 - 1.13.
2019 guidance: Revenue: $700M - 710M from $730M - 750M; EPS: $5.80 - 5.90 from $6.75 - 6.95. Guidance revised due to "short-term challenges."
Medifast, Inc., through its subsidiaries, manufactures and distributes weight loss, weight management, healthy living products, and other consumable health and nutritional products. It offers bars, bites, pretzels, puffs, oatmeal and cereal crunch products, drinks, hearty choices, pancakes, puddings, soft serves, shakes, smoothies, soft bakes, and soups under the Medifast, OPTAVIA, Thrive by Medifast, Optimal Health by OPTAVIA, Flavors of Home, and Essential 1 brands. The company sells its products through various channels, including the Internet, call centers, independent health advisors, franchise weight loss clinics, and direct consumer marketing. The company was founded in 1980 and is headquartered in Baltimore, Maryland.
As always, trade with caution and use protective stops.
Good luck to all!
Trade closed: target reached
MED up 38% in just 5 weeks since we recommended it to our subscribers.Congrats to all who participated!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.