Here’s your trade on TG Therapeutics ($TGTX) – March 3, 2025
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at TG Therapeutics ( NASDAQ: TGTX ).
There’s a pretty cool W pattern here going back several years. We’re looking at the weekly chart here. The company reported earnings and they blew everybody away. The stock is up about 14 percent in today’s trading. It’s got a “multiple sclerosis treatment”, this is a cutting-edge biotech company. Biotech companies generally don’t make money. They can bring in revenue but typically it’s like their earnings are, let’s say earnings and revenues, there’s a big difference. When you get something like this you really want to be cognizant of where the financials lie.
This is how they look on MarketSurge. I’m looking here at the fundies on TG Therapeutics ( NASDAQ: TGTX ). If you look here in the upper left-hand corner, this is the earnings box. You can see earnings per share and then the year. As I said, biotech companies, typically don’t make money. That sure was the case in 2018, losing 2.30, then $1.96, then 2.42, then 2.63 in 2021.
Then it just about halved that loss down to 1.46 in 2022. And then lo and behold 2023, it’s the first time the company turned a profit at a whopping 9 cents. Now, let’s fast forward to 2024, wow, 15 cents. This is where it gets really cool though, we went from 9 cents to a 15-cent profit between 2023 and 2024. In 2025 the estimates are for $1.00.
Let me get this straight, you’ve seen the curve here, where we go from losing a ton of money, to not so much money, to making a little bit of money. Then suddenly, we go from 15 cents up to $1.00 for 2025. Then even into 2026, we’re estimating a little over $2.00. So in the space of two years the market estimates, and that’s all we can deal with right now, the market estimates earnings will run from 15 cents up to $2.03.
Frankly, that’s kind of Bitcoin territory. So anyway, if we look at the fundamentals on the bottom, earnings, you can see a big, big jump here, that’s why this thing ran like it is. The relative strength rating is good. Sales and revenues are up markedly, and happily, gross margins are still up almost 90 percent. If we go to the weekly chart we see the earnings per share going back several years. This had tailed off here and then now this line is starting to go higher as well.
So the way I see it is, I’m looking at TG Therapeutics ( NASDAQ: TGTX ). It’s breaking out here above this channel and continuing to run. I always have a difficult time buying a stock that’s up 14 percent the following day, this would not deviate from that. I think it’s really, really tough to be buying in this stock that’s up 15 percent. I wouldn’t suggest doing it, but I would suggest this, I’ll go back to TC2000, I like it better for charting.
I would suggest doing this, track this stock. Watch and see how it trades tomorrow. You see it was really, really strong in the morning, and then it held that strength into the close. If the stock happens to pull back, it probably won’t tomorrow morning, my bet is, it’s going to gap up. But if the stock does pull back sometime over the next few days, then this is maybe something that you want to take a nibble on.
If you do chase it just be aware that in this market, chasing has not been rewarded. I get it, earnings are good, I’ve shown you the fundamentals. I think it’s a great stock to own, it’s been drifting sideways for what, a couple of months, over three months. There is everything to like about this stock, but every trade starts with the entry.
I just want you to be careful. I would say, $35.00 is a key resistance level here. I’ll just say this, the odds are that if you’re chasing a stock that’s up 14 percent you’re going to wind up getting clipped. Because even if the stock goes up a little bit more after you buy it when a stock is up 14 percent, there are a lot of folks that are already in the stock that are going to say, hey, you know, I think it’s time for me to take profits.
Volume does not lie, look at this massive volume, over 15 million shares. The average volume is 2.3 million shares, so this is a ton of volume. Watch how this stock trades around 35.00. I’m not going to say don’t chase it. I’m just saying if you are going to chase it. Just know that this is a risky, very aggressive trade and you had better define your risk before you buy those shares.
If I buy the shares, what’s my drop-dead price? Where does the stock have to pull back to for me to say, oh crap, I’m wrong on this? You’ve got to have that price defined because if you don’t you’re going to be in big doo-doo.
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