Macroaxis Stories

Should you continue to hold Nurix TherapeuticsInc (USA Stocks:NRIX) based on the current analyst consensus?

July 11, 2023  By Gabriel Shpitalnik
Macroaxis Story
Nurix Therapeutics Inc (NASDAQ: NRIX), a player in the Biotechnology industry, is currently under the spotlight of financial analysts. With a Beta of 1.6253, the company exhibits higher volatility compared to the market, indicating potential for higher returns but also greater risk. Despite a net loss of $180.4M and an operating loss of $183.9M, the company managed to generate total revenue of $38.6M. Analysts have a strong consensus towards a 'Buy' rating, with 8 strong buys and 2 buys against a single hold. The analyst target price estimated value stands at $29.909, with the highest estimated target price at $53 and the lowest at $11. This indicates a significant potential upside from the current market value of $9.99. However, the company's high short ratio of 22.22 and shares short of 5.3M from the prior month's 5.2M indicate some bearish sentiment in the market. Investors should consider the company's risk-adjusted performance of 0.0537 and downside deviation of 4.79 before making a decision. Given the current market and company specifics, holding onto Nurix Therapeutics Inc could be a potentially rewarding strategy for investors willing to tolerate higher risk. However, investors should keep an eye on the company's financials and market sentiment for any drastic changes. Nurix Therapeutics Inc. is set to announce its earnings tomorrow. The subsequent financial report is anticipated on October 5, 2023. Given the growing excitement around the biotechnology sector, it is prudent to delve deeper into Nurix Therapeutics Inc. We will examine why investors might still consider investing in the company, considering the current economic climate.
Published over a year ago
View all stories for Nurix Therapeutics | View All Stories

Reviewed by Raphi Shpitalnik

Nurix Therapeutics Inc (USA Stocks: NRIX) has shown a notable level of volatility with a Coefficient Of Variation of 1.5K and a Standard Deviation of 5.06. The company has been struggling with its financial performance, reporting a net income loss of 180.4M from continuing operations. However, the company's total revenue stands at 38.6M with a promising quarterly revenue growth of 0.318, indicating potential for future growth. The company's stock is currently trading at a lower price of 9.99 compared to its 52-week high of 19.91, which could be seen as an opportunity for investors to buy at a lower price. However, considering the company's high level of risk and negative return on assets of 0.28, investors should be cautious and consider their risk tolerance before investing in NRIX.

Detailed examination of Nurix Stock

Nurix Therapeutics Inc. is currently UNDERVALUED at $14.77 per share, with modest growth projections on the horizon. We offer an investment recommendation to supplement the latest expert consensus on Nurix Therapeutics Inc. Our dynamic recommendation engine employs a multidimensional algorithm to assess the company's growth potential, utilizing all available technical and fundamental data at the time.
What is the right price you would pay to acquire a share of Nurix Therapeutics? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Nurix Therapeutics this year

Annual and quarterly reports issued by Nurix Therapeutics are formal financial statements that are published yearly and quarterly and sent to Nurix stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Nurix Therapeutics often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How important is Nurix Therapeutics's Liquidity

Nurix Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Nurix Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Nurix Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Nurix Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Nurix Therapeutics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Nurix Therapeutics's total debt and its cash.

Nurix Therapeutics Gross Profit

Nurix Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Nurix Therapeutics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Nurix Therapeutics Gross Profit growth over the last 10 years. Please check Nurix Therapeutics' gross profit and other fundamental indicators for more details.

Breaking down the case for Nurix Therapeutics

Earning per share calculations of Nurix TherapeuticsInc is based on official Zacks consensus of 4 analysts regarding Nurix TherapeuticsInc's future annual earnings. Given the historical accuracy of 85.6%, the future earnings per share of the company is estimated to be -0.63 with the lowest and highest values of -0.91 and -0.47, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Nurix a risky opportunity?

Let's check the volatility. Nurix is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Nurix (USA Stocks:NRIX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Nurix TherapeuticsInc stock makes you a part-owner of that company.

Nurix TherapeuticsInc Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Nurix TherapeuticsInc. The Nurix consensus assessment is calculated by taking the average estimates from all of the analysts covering Nurix TherapeuticsInc
Strong Buy
8		Buy
2		Hold
1
Strong Buy872.73
Buy218.18
Hold19.09
Sell00.0
Strong Sell00.0
Nurix Therapeutics Inc (NRIX), a player in the Biotechnology industry, is currently under the spotlight of investors. With a market capitalization of 471.61M and a total asset of 416.76M, the company shows a potential for growth. Despite an operating income loss of 183.9M and a net income loss of 180.4M, Nurix has managed to maintain a healthy current ratio of 5.26X, suggesting it has more than enough resources to meet its short-term obligations. The company's shares are heavily owned by institutions, at 95.94%, indicating a high level of confidence from savvy investors. However, with a high number of shares shorted at 5.27M and a short percent of 0.1138, it's clear that some investors are betting against the company. The stock's beta of 1.63 suggests it's more volatile than the market, which coupled with a downside deviation of 4.79, indicates a higher risk. Yet, the company's risk-adjusted performance of 0.0537 and a Treynor Ratio of 0.2007, suggest a reasonable compensation for the risk taken. The current analyst consensus target price for NRIX is 28.27, indicating a potential upside of 7.37. However, with a probability of bankruptcy at 24.37%, investors should carefully weigh the potential rewards against the risks. In conclusion, while Nurix Therapeutics Inc presents some promising aspects, it may be prudent for investors to hold onto their positions for now, and monitor the company's performance closely.

Some Nurix technical indicators suggest correction

Nurix Therapeutics Inc.'s stock is currently under close examination, as certain technical indicators suggest a possible correction. A significant concern is the drop in the Jensen Alpha to 0.3, which could indicate an upcoming volatility dip. This statistical measure is utilized to assess the risk-adjusted performance of an investment or a portfolio. A reduction in this value may suggest that the stock's returns are not adequately compensating for the risk involved, implying a potential downward adjustment in the stock's price. Investors should closely monitor these indicators and adjust their risk tolerance and investment strategies accordingly. Nurix Therapeutics Inc. displays an above-average semi-deviation for the current time horizon. We advise investors to examine Nurix Therapeutics Inc. individually to ensure that intended market timing strategies and available technical indicators align with their predictions about Nurix Therapeutics Inc.'s future systematic risk.
Understanding different market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Nurix Therapeutics Inc.'s stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect Nurix Therapeutics Inc.'s stock price while adding stress to investors as they watch their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of the current market conditions, Nurix TherapeuticsInc may not be the most lucrative investment. Despite the analyst overall consensus being a 'Buy' with 8 strong buys and 2 buys, the valuation real value stands at $14.77, which is significantly lower than the analyst highest estimated target price of $53. Furthermore, the naive expected forecast value is a mere $10.72, while the valuation market value is even lower at $9.99. The possible upside price of $15.86 may seem appealing, but the potential downside price of $5.57 is a risk that investors should consider. With the fiscal year ending in November, it may be a prudent decision to exit Nurix TherapeuticsInc, unless there are compelling reasons to hold on to the stock. .

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Nurix Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com