Many stocks have been testing new highs in 2020, and one of the most notable is Fangdd Network Group Ltd. (DUO). Currently, DUO is trading at $47.06 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $12.62.
To add more color to this target, the company’s high over the last year is $16.60 and the low is $5.66. Over the last 52 weeks, DUO is up 183.49% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, DUO reported a profit of $10.96 million. Fangdd Network Group Ltd. also saw revenues increase to $135.18 million. In addition, DUO has free cash flow of $0.0 as of 09-2019 The company’s EBITDA came in at $31.89 million which compares well with its peers.
DUO booked profit margins of -35.30%, its Return on Equity (ROE) is 460.30%, and its Return on Assets is -36.00%. All told, it is clear that, DUO needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DUO has a short ratio of 0.63 and outstanding shares of 74.43M.
DUO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 766.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.40. Investors should also keep an eye on sector updates as DUO has historically followed its peers on positive news.
All told, Fangdd Network Group Ltd. DUO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DUO represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Fangdd Network Group Ltd. DUO is now commanding a market cap of 3.67B and a float of 7.44M. DUO is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DUO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in DUO, either long or short, and we have not been compensated for this article.