Our Stock of the Week is ADMA Biologics (ADMA). ADMA develops plasma-based biologics for the treatment and prevention of infectious diseases.
The stock has been a winning growth name and was recently ranked number one in the IBD50. However, in its most recent quarterly earnings, it reported a one-time item that was due to a manufacturing error. The stock sold off sharply on the news, although analysts remain quite bullish on the name.
Raymond James raised its price target to $32 from $25 and reiterated its ‘strong buy’ rating. The analyst stated that fundamentals are trending positively, and guidance for 2025-2026 was raised, and there is still a lot of room for upside. It is also noted that tariffs are not an issue for ADMA.
Mizuho Securities also covers the stock and increased its target price to $35 from $32 while maintaining its outperform rating.
The stock has fallen back to support levels and could see a bit more downside to the 200 dma, but what is happening here is that traders who employ the CANSLIM growth stock methodology are dumping the stock because it has breached technical sell rules and triggered stops. It is now dependent on ‘value’ buyers providing support, and that usually takes a bit of time. A transition from being a growth name to being a value name is difficult, but the fundamentals here have only improved, so I’m confident that the stock will find some solid support.
As always, we will not chase the name on Monday morning but will aggressively trade the volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in CRWV. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
