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Is It Too Late To Buy Mirati Therapeutics Inc (MRTX)?

Mirati Therapeutics Inc (NASDAQ:MRTX), a pharmaceuticals, biotechnology and life sciences company based in United States, received a lot of attention from a substantial price increase on the NasdaqCM in the over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine MRTX’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. Check out our latest analysis for Mirati Therapeutics

Is MRTX still cheap?

Good news, investors! MRTX is still a bargain right now. In this instance, I’ve used price-to-book ratio (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that MRTX’s ratio of 1.4x is below its peer average of 7.2x, which suggests the stock is undervalued compared to the pharmaceuticals, biotechnology and life sciences industry. What’s more interesting is that, MRTX’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much MRTX moves relative to the rest of the market.

What does the future of MRTX look like?

NasdaqCM:MRTX Future Profit Sep 16th 17
NasdaqCM:MRTX Future Profit Sep 16th 17

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio.Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at MRTX future expectations. Though in the case of MRTX, it is expected to deliver a relatively unexciting earnings growth of 9.25%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for MRTX, at least in the near term.

What this means for you:

Are you a shareholder? Since MRTX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MRTX for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MRTX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mirati Therapeutics. You can find everything you need to know about MRTX in the latest infographic research report. If you are no longer interested in Mirati Therapeutics, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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