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Author's Note: Every once in a while I see a stock where most analysts predict decreasing Revenue and Earnings but they all seem to recommend it anyway — Here is a good example. Please tell me what I'm missing.

The Chart of the Day belongs to the biotechnology company Avidity Biosciences (RNA). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 5/6 the stock gained 56.92%.

(Click on image to enlarge)

RNA Price vs Daily Moving Averages

Avidity Biosciences, Inc., a biopharmaceutical company, engages in the delivery of RNA therapeutics. It develops antibody oligonucleotide conjugates (AOC) that are designed to treat diseases previously untreatable with RNA therapeutics. The company's lead product candidate AOC 1001 for the treatment of myotonic dystrophy type 1, a rare monogenic muscle disease that is in phase 1/2 clinical trial. Its other products in pipeline include AOC 1044 for the treatment of duchenne muscular dystrophy, which is under phase 1/2 clinical development trial; and AOC 1020 to treat facioscapulohumeral muscular dystrophy that is in phase 1/2 clinical trial. The company is developing products for rare skeletal muscle and rare cardiac diseases. Avidity Biosciences, Inc. was incorporated in 2012 and is headquartered in San Diego, California.

Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the 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.
 

Barchart Technical Indicators:

• 100% technical buy signals
• 178.50+ Weighted Alpha
• 227.28% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 6 new highs and up 53.07% in the last month
• Relative Strength Index 80.80%
• Technical support level at $35.50
• Recently traded at $39.80 with 50 day moving average of $26.67
   

Fundamental Factors:

• Market Cap $3.67 billion
• Revenue is expected to grow 35.30% this year but decrease by 17.00% next year
• Earnings are estimated to decrease 10.00% this year and decrease an additional 6.60% next year 

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• In spite of those projections Wall Street analysts issued 8 strong buy, and 1 buy recommendations
• Analysts have price targets between $45 and $96 with a consensus at $62.25 for a 56% increase
• Value Line rates the stock its above average rating of 2
• CFRAs MarketScope has a  hold rating
• MorningStar gives the stock an average 3 star rating with a Fair Value of $58.35 that's an under valued by 34%
• 2,780 investors monitor the stock on Seeking Alpha

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