Epizyme, Inc. (EPZM)

Epizyme stock forecast: buy or sell

Epizyme stock outlook

  • Epizyme closed on Friday at $12.87 after barely changing a 0.23%.
  • Epizyme presented its earnings report on Tuesday
  • Morgan Stanley posted a buy rating for Epizyme on Wednesday, with a forecast of $29.00
  • Epizyme, Inc., a late-stage biopharmaceutical company, discovers, develops, and commercializes novel epigenetic medicines for patients with cancer and other diseases primarily in the United States.
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Important note:
The viewpoints published in this post are personal and not recommendations for you to buy or sell shares. The author of this report does not have an understanding of the individual scenarios of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for learning motives only

Epizyme stock chart overview

Should I buy Epizyme stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is EPZM stock a buy?

Currently, Epizyme stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for EPZM in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Epizyme stock?

"To sell or not to sell", if you are holding Epizyme stock?. Trading strategies prevent us from making impetuous decisions based on our personal sentiments or the noise that surrounds the market. We like very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies are not intended for selling short Epizyme stock

A golden rule is that you should not mantain an investment that yields losses greater than those expected upon purchase. The moment to sell your stock should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Epizyme stock?

In the current situation of Epizyme there is not any eligible sell setup, so Epizyme stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Epizyme stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one analyst rating was published for Epizyme

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Epizyme ratings

Brokerage firmRating
Aug 5th, 2020
Morgan Stanley Buy

Technical analysis

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances to identify price points in the stock price action that may act as obstacles, containing the price of shares to move up or down. Supports are levels where the price tends to stop as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until finding another support level. On the other hand, resistance levels are where the price tends to find a curb as it rises. In the same way, the price is more liable to "bounce off" at this level, and if it finally breaks this level, it will rise more easily until it meets the next resistance

The current resistances are:

  • R1: $13.46 (4.58% above)
  • R2: $13.50 (4.9% above)
  • R3: $13.55 (5.28% above)
  • The current support levels are:

  • S1: $12.56 (-2.41% below)
  • S2: $12.29 (-4.51% below)
  • S3: $12.10 (-5.98% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known studio designed by John Bollinger. It is made up of 3 lines that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on Thursday, the price bounced off by 1.02%. The price is trading very close to the lower Bollinger band, indicating some level of oversold in recent sessions. This is not a buy point, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The RSI broke out the oversold level of 30 on Wednesday after just being in the oversold zone for 1 day (what can be considered a strength signal). The RSI value on Friday was 35.34

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    Earnings and financials

    Epizyme hosted the earnings call and released the Q2 report on Tuesday. Epizyme topped consensus earnings estimates and posted an Earnings per Share of $-0.58, that is a 4.92% surprise versus the forecasts of $-0.61. Reported sales were $2.5 million versus estimates of $4.7 million.

    This compares to earnings of $-0.53 per share a year ago, so reported EPS is a drop of -9.43%. Looking at revenues, figures collapsed a -58.19% compared to $5.9M same quarter 12 months ago.

    Epizyme releases financial report next October. Market analysts analysts forecast earnings of %s per-share of $-0.58, that is a 0% than Q2. Earnings reporting day has an additional risk for stock investors as the results posted can soar and sink the price with very low liquidity and not honouring your buy or stop-loss orders. Have a look company's website to confirm time and details about the earnings call and the earnings report.

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