Momentum Stock Watch: EQRx, Inc. (EQRX)

Company Profile:

EQRx, Inc., a pharmaceutical company, engages in developing medicines primarily for the treatment of oncology and immune-inflammatory diseases in the United States. The company’s pre-registrational programs in Phase III clinical trial include Aumolertinib, an epidermal growth factor receptor (EGFR) inhibitor for the treatment of patients with EGFR-mutated non-small cell lung cancer (NSCLC); and Sugemalimab, an anti-programmed death-ligand 1 antibody for the treatment of Stage III and Stage IV NSCLC. Its other programs in pipeline include clinical and pre-clinical stage assets, which comprise Lerociclib, a small molecule cyclin-dependent kinase 4/6 inhibitor, which is in Phase II clinical trials in patients with metastatic breast cancer; EQ176, an anti-programmed death-1 antibody that is in Phase III trials for the treatment of patients with primary liver cancer; and EQ121, a selective janus kinase-1 inhibitor that is in various Phase I trials. The company was incorporated in 2019 and is headquartered in Cambridge, Massachusetts.

Recent News:

The company reported Cash, cash equivalents and short-term investments totaled $1.6 billion at June 30, 2022. Total operating expenses for the three months ended June 30, 2022 were $79.1 million, as compared to $34.6 million for the three months ended June 30, 2021. EQRx expects to maintain sufficient capital resources to fund anticipated operations at least into 2025.

On Aug. 07, 2022, the company announced a late-breaking oral presentation of updated data from the Phase 3 GEMSTONE-301 trial of sugemalimab in non-small cell lung cancer (NSCLC) at the International Association for the Study of Lung Cancer (IASLC) 2022 World Conference on Lung Cancer (WCLC), taking place August 6 through August 9, 2022.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

EQRX receives outperform rating in price to book value and discounted cash flow. Technical indicators signal the bullish signs, as there is a bullish crossover in the stochastic oscillator, the MACD is trying to cross backup. The RSI(14) stands at 55.9 with positive bias. We rate EQRx, Inc. (EQRX) a BUY.