What Happened?
Shares of clinical research company Fortrea Holdings (NASDAQ: FTRE) jumped 4.5% in the afternoon session after Baird raised its price target on the stock to $14.00. This positive analyst action adds to a broader shift in sentiment for the clinical research organization. According to recent data covering six analysts, the average 12-month price target for Fortrea has risen by nearly 20% to $8.00, with a high estimate now matching Baird's at $14.00.
Is now the time to buy Fortrea? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Fortrea’s shares are extremely volatile and have had 62 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock gained 7.7% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Fortrea is down 43.4% since the beginning of the year, and at $10.56 per share, it is trading 55.8% below its 52-week high of $23.90 from September 2024. Investors who bought $1,000 worth of Fortrea’s shares at the IPO in June 2023 would now be looking at an investment worth $350.83.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
