• Owlet Baby Care (OWLT) has strong technical momentum and is trading at a new 3-year high.
• Shares are up 200% over the past year.
• OWLT maintains a 100% “Buy” opinion from Barchart.
• Wall Street rates OWLT a “Strong Buy,” but Morningstar notes the stock is currently overvalued by 10% after its recent run-up.

Today’s Featured Stock

Valued at $250 million, Owlet (OWLT) provides digital parenting platform aims to give parents real-time data and insights to help them feel more calm and confident.

The company’s flagship products include the Dream Sock, a wearable infant health monitor utilizing pulse oximetry technology to track vital signs such as pulse rate, oxygen levels, and sleep patterns. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. OWLT checks those boxes. Since the Trend Seeker signaled a new “Buy” on Nov. 11, the stock has gained 53.51%.

Barchart Technical Indicators for Owlet Baby Care

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Owlet hit a 3-year high of $15.20 on Dec. 9.

• OWLT has a Weighted Alpha of +268.63.
• Owlet has a 100% “Buy” opinion from Barchart.
• The stock gained 195.06% over the past year.
• OWLT has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $15.20 with a 50-day moving average of $10.33.
• Owlet made 14 new highs and gained 69.51% in the last month.
• Relative Strength Index (RSI) is at 79.78.
• There’s a technical support level around $14.

Don’t Forget the Fundamentals

• $250 million market capitalization.
• Revenue is projected to grow 33.97% this year and another 22.11% next year.
• Earnings are estimated to decrease 534.72% this year but rebound again by 75.05% next year

Analyst and Investor Sentiment on Owlet Baby Care

It looks like Wall Street has discovered this stock, but individual investors are just beginning to notice it.

• The Wall Street analysts tracked by Barchart have given 4 “Strong Buy” opinions on the stock with price targets between $14.00 and $15.50.
• Value Line rates it “Above Average.”
• CFRA’s MarketScope Advisor rates it a “Buy.”
• Morningstar thinks with the stock’s recent runup, it’s overvalued by 10%.
• 8 investors following the stock on Motley Fool think the stock will beat the market.
• 1,820 investors are monitoring the stock on Seeking Alpha, which rates it a “Strong Buy.”
• Short interest is only 1.82% of the float.

The Bottom Line on Owlet Baby Care

It’s a positive sign that Wall Street is giving the stock good opinions, but we do have a slowing birth rate. 

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

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