Investors Have Been Waiting to Buy the Dip in This Hot Biopharma Stock

• Jazz Pharmaceuticals (JAZZ) is a specialty biopharma company focused on neuroscience and oncology.
• JAZZ exhibits strong technical momentum. Shares are up nearly 50% over the past year.
• The stock maintains a 100% “Buy” technical opinion from Barchart.
• Wall Street sentiment is bullish with multiple “Strong Buy” ratings and price targets up to $275.

Today’s Featured Stock

Valued at $11.64 billion, Jazz Pharmaceuticals (JAZZ) is a specialty biopharmaceutical company with a focus in the areas of neuroscience and oncology. It derives most of its revenues from its sleep disorder drugs Xywav and Xyrem. Both drugs are approved for treating cataplexy and excessive daytime sleepiness in narcolepsy patients. 

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. JAZZ checks those boxes.

Barchart Technical Indicators for Jazz Pharma

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.

Jazz Pharma scored an all-time high of $198.00 on Feb. 1.

• Jazz Pharma has a Weighted Alpha of +55.55.
• JAZZ has a 100% “Buy” opinion from Barchart.
• The stock has gained 48.11% over the past 52 weeks.
• Jazz Pharma has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $186.37 with a 50-day moving average of $175.80.
• JAZZ has made 1 new high but is down 0.48% over the past month.
• Relative Strength Index (RSI) is at 57.73.
• There’s a technical support level around $186.92.

Don’t Forget the Fundamentals

• $11.64 billion market capitalization.
• 44.18x trailing price-earnings ratio.
• Revenue is expected to grow 4.13% this year and another 7.88% next year.
• Earnings are estimated to increase 185.45% this year and an additional 4.29% next year.

Analyst and Investor Sentiment on Jazz Pharma

• The Wall Street analysts followed by Barchart gave the stock 11 “Strong Buy,” 3 “Moderate Buy,” and 2 “Hold” opinions with price targets between $188 and $275.
• Value Line rates the stock “Average” and recently advised investors to buy the dip.
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is fairly valued with a fair value of $196.
• 1,211 investors following the stock on Motley Fool think it will beat the market while 361 think it won’t.
• 23,933 investors are following the stock on Seeking Alpha which rates it a “Strong Buy.”
• Short interest is 9.74% of the float with 4.52 days to cover the float.

The Bottom Line on Jazz Pharma

The stock has been a favorite among Wall Street analysts and individual investors for quite some time. The recent dip in the market may be that buying opportunity some have been waiting for.

Additional disclosure: The Barchart Chart 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.