This Stock Is Up 1,229% in Just the Past Year, But Don’t Bet Your Retirement Money on It

• Tango Therapeutics (TNGX) has surged 1,229% over the past year.
• Shares are trading at a new all-time high and have strong technical momentum.
• TNGX maintains a 100% “Buy” technical opinion from Barchart.  
• Short interest is exceptionally high at 34.16% of the float, underscoring the stock’s highly speculative nature and significant risk.

Today’s Featured Stock

Valued at $2.98 billion, Tango Therapeutics (TNGX) is a biotechnology company. It is focused on discovering and delivering precision cancer medicines.  

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. TNGX checks those boxes.

Barchart Technical Indicators for Tango Therapeutics

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.

Tango Therapeutics scored a 5-year high of $21.82 on March 25.

• Tango has a Weighted Alpha of +415.87.
• TNGX has a 100% “Buy” opinion from Barchart.
• The stock has gained 1,229.87% over the past 52 weeks.
• Tango has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $20.45 with a 50-day moving average of $14.14.
• TNGX has made 12 new highs and is up 79.30% over the past month.
• Relative Strength Index (RSI) is at 77.11.
• There’s a technical support level around $19.71.

Don’t Forget the Fundamentals

• $2.98 billion market capitalization.
• Revenue is expected to decrease 89.32% this year and another 47.64% next year.
• Earnings are estimated to also decrease 51.60% this year and an additional 16.20% next year.

Analyst and Investor Sentiment on Tango Therapeutics

• In spite of analysts’ projection of deceases in both revenue and earnings, the Wall Street analysts followed by Barchart gave the stock 10 “Strong Buy” and 2 “Hold” opinions with price targets between $14 and $27.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 5% undervalued with a fair value of $20.61.
• 1,750 investors are following the stock on Seeking Alpha which rates it a “Hold.”
• Short interest is 34.16% of the float with 18.20 days to cover the float.

The Bottom Line on Tango Therapeutics

Someone is going to get burned here. Why are analysts giving a “Strong Buy” to a stock they think will have decreasing revenue and earnings? Look at the extremely high short interest of 34.16%. This is a highly, highly speculative stock here. It might be fun to watch, but not with my retirement money.

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.