Therealreal Inc (NASDAQ: REAL) Is A Blank Check For Growth

Therealreal Inc (NASDAQ:REAL) shares, rose in value, with the stock price up by 0.28% to the previous day’s close as strong demand from buyers drove the stock to $3.60.

Actively observing the price movement in the last trading, the stock closed the session at $3.59. The value of beta (5-year monthly) was 2.85. Referring to stock’s 52-week performance, its high was $4.10, and the low was $1.00. On the whole, REAL has fluctuated by 12.50% over the past month.

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With the market capitalization of Therealreal Inc currently standing at about $376.88 million, investors are eagerly awaiting this quarter’s results, scheduled for May 07, 2024 – May 13, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.15, which is expected to increase to -$0.13 for fiscal year -$0.39 and then to about -$0.2 by fiscal year 2025. Data indicates that the EPS growth is expected to be 55.20% in 2025, while the next year’s EPS growth is forecast to be 48.70%.

Analysts have estimated the company’s revenue for the quarter at $138.86 million, with a low estimate of $133 million and a high estimate of $145.7 million. According to the average forecast, sales growth in current quarter could jump down -2.10%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $587.95 million, representing an increase of 7.00% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that REAL’s technical picture suggests that short-term indicators denote the stock is a 100% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of REAL currently trading nearly 1.51% and 40.12% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 60.10, while the 7-day volatility ratio is showing 6.19% which for the 30-day chart, stands at 9.07%. Furthermore, Therealreal Inc (REAL)’s beta value is 3.00, and its average true range (ATR) is 0.26.

A comparison of Therealreal Inc (REAL) with its peers suggests the former has fared considerably weaker in the market. REAL showed an intraday change of 0.28% in last session, and over the past year, it grew by 185.71%%.

Data on historical trading for Therealreal Inc (NASDAQ:REAL) indicates that the trading volumes over the past 10 days have averaged 2.56 million and over the past 3 months, they’ve averaged 3.74 million. According to company’s latest data on outstanding shares, there are 104.67 million shares outstanding.

Nearly 23.21% of Therealreal Inc’s shares belong to company insiders and institutional investors own 52.22% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 15.08 million shares as on Mar 15, 2024, resulting in a short ratio of 2.29. According to the data, the short interest in Therealreal Inc (REAL) stood at 14.40% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 12.9 million. The stock has risen by 79.10% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the REAL stock heading into the next quarter.