This Little-Known Stock Has Surged 550% in the Past Year

• SELLAS Life Sciences (SLS) has surged 550% in the past year, driven by technical momentum and speculative trading.
• SLS currently has no revenue, with all products in development or clinical trials, making the stock highly speculative.
• Technical indicators are overwhelmingly bullish, but high short interest highlights significant risk.
• Sentiment is mixed: Barchart and Value Line are bullish, while Morningstar and Seeking Alpha rate SLS as “Hold” or suggest it is overvalued. 

Today’s Featured Stock

Valued at $2.95 billion, SELLAS Life Sciences (SLS) focuses on the development of novel cancer immunotherapies for various cancer indications. 

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, a Weighted Alpha above 50+, and a 60-month beta above 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SLS checks those boxes. The Trend Seeker issued a new “Buy” signal on May 13. Since then, the stock has gained 119.20%.

Barchart’s Technical Indicators for SELLAS Life Sciences

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.

SELLAS scored a 5-year high of $15.88 on June 30.

• SELLAS has a Weighted Alpha of +367.22.
• SLS has a 100% “Buy” opinion from Barchart.
• The stock has gained 559.90% over the past 52 weeks.
• SELLAS has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $14.16 with a 50-day moving average of $7.98.
• SLS has made 8 new highs and gained 74% over the past month.
• 60-month beta of 2.42.
• Relative Strength Index (RSI) is at 67.95.
• There’s a technical support level around $13.60.

Don’t Forget the Fundamentals

• $2.95 billion market capitalization.
• This company currently has no revenue and is in the drug development and trial stages.

Analyst and Investor Sentiment on SELLAS Life Sciences

• The Wall Street analyst followed by Barchart gives the stock 1 “Strong Buy” opinion.
• Value Line rates the stock “Highest” but that is based solely on price performance.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 39% overvalued with a fair value of $10.95.
• 36,940 investors are following the stock on Seeking Alpha, which rates it a “Hold.” Their analysts note a high valuation and a lack of revenue and earnings.
• Short interest is a high 32.22% of the float with 9.25 days to cover the float.

The Bottom Line on SELLAS Life Sciences

This stock is totally speculative. Although it has positive price momentum and a large following, the number of short sellers is growing. The stock is a coin flip.

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.