Is TVTX Stock a Solid Long Term Investment?

Stock Market

The biotech company, Travere Therapeutics Inc. and its TVTX stock recently earned a relative strength rating upgrade in February, 2022. This is considered an important milestone for the company as it moves into the ninety-plus percentile as its improvement rating is now at ninety-five. With the stock market exchange, the advice is to pay attention to stocks with relative price strength through its rating tracks. When a stock’s price movement during a fifty-two week stretch holds up against other stocks in the database, this should be regarded as a good thing. So, does this mean Travere Therapeutics Inc. and its TVTX stock is still worth a long-term investment? At the moment, it doesn’t appear to offer a proper buying opportunity. Travere Therapeutics Inc. is expected to report its fourth quarter and 2021’s full financial results by February 24, 2022. This San Diego-based company currently holds the rank of number fifty in its peers in the Medical-Biomed/Biotech industry group. Ahead of them in the top five are Vertex Pharmaceuticals (VRTX), Amphastar Pharmaceuticals (AMPH), and Regeneron Pharmaceutical (REGN).

In the eyes of Yahoo! Finance, diversification is key when it comes to dealing with the volatility of stock pricing. NASDAQ’s TVTX had done well in the past, but has yet to demonstrate a reason impressive enough to embark on a long-term investment as the stock value only went up 5.9% in the past three years. Between October 2020 and October 2021, Travere Therapeutics Inc. suffered a loss. However, there is speculation the company is more focused on revenue and revenue growth for the time being, which has grown by nine percent. This doesn’t sound promising since the company had been losing money. In keeping with revenue growth, the share price gained twenty-six percent at the time. While this doesn’t seem like a standout result, it is solid. This has resulted in the market seeming less enthusiastic about TVTX stock, despite there is a solid level of revenue growth. This is a slow and patient stock that has seen shareholders earn a twenty-six percent return over the past twelve months, which isn’t far from the general market return. Among stock market analysts, TVTX stock may be worth watching in the long term as a proxy for business performance. For the best up-to-date track on Travere Therapeutics Inc. and its TVTX stock, Nasdaq provides detailed information all investors need to know before making a decision whether or not its worth their time and money.

Pertinent Information

The information Stocks Register gave regarding TVTX stock showed a rise of slightly over two percent on Friday, February 11, 2022. This suggests an upside momentum from its value of $27.97 USD. Currently, the market cap for Travere Therapeutics Inc. is $1.65 billion USD. The investors are looking forward to this quarter’s earnings report that’s slated to be released during the first week of March, 2022. There are projections the company’s earnings per share (EPS) to be at sixty-eight cents, which saw the 2021 growth forecast increase near the three-dollar mark for the fiscal year of 2022. There is an analyst consensus estimate of nearly $57 million USD for the company’s revenue for the quarter, along with a low estimate of $45 million USD and a high estimate nearly $70 million USD. The average forecast has suggested a growth of over eleven percent in sales growth compared to quarterly growth in the same period from the previous fiscal year. There are also Wall Street analyst projections the company’s year per year revenue for 2021 to grow up to $227.5 million USD. This represents at least a fourteen percent jump on what was reported in the last financial year. There are revisions that could be used as a tool in order to get short term price movement insight. For Travere Therapeutics Inc., the short term indicators have suggested TVTX stock is a hold. At the moment, the stock is on average a fifty percent buy as suggested by medium term indicators. As for long-term indicators, the stock has been placed in the one hundred percent buy category. This suggests, for the moment, TVTX stock is considered a long-term investment worth looking into. The 0.9 percent of TVTX stock shares are in the hands of the company insiders. With current price changes, this has pushed the stock into a position that has the potential for future growth. This has served as a reason for investor optimism.

About Travere Therapeutics Inc.

Travere Therapeutics Inc. is a biopharmaceutical company that focuses on the identification, development, and delivery of life-changing therapy options to people having to contend with rare diseases. The official headquarters of Travere Therapeutics Inc. is located in San Diego, California. Its current chief executive officer (CEO) is Eric Dube, who assumed this role as of 2019. Although based in the U.S.A., this is a company that has served as a global pipeline between caregivers and patients. The chief financial officer (CFO) is Laura Clague and the chief commercial officer (CCO) is Peter Heerma. According to the information provided by Bloomberg, this company was first incorporated as Retrophin Inc. in 2011 before changing its name to Travere Therapeutics Inc. in 2020. It currently has 262 employees in its roster. Eric Dube, the current CEO of travere Therapeutics Inc., has worked with the rebranded company to do everything possible to put as much distance between themselves and Martin Shrekeli.

The original founding of Retrophin Inc. came from Martin Shkreli, who was convicted for securities fraud in relation to his management of two hedge funds and Retrophin. He is scheduled to be released from prison late 2023. This scandal resulted Retrophin Inc. to rebrand itself as Travere Therapeutics Inc. as a means to distance itself with the scandal. Already in 2014, the board of directors from Retrophin had Shkreli replaced. Shortly afterward, he resigned from the company and was replaced by Stephen Aselage. During Shkreli’s tenure as CEO, the company’s employees were using Twitter accounts to make up gangster-style rap jokes, encouraging the short selling of other biotech stocks. This resulted in Retrophin filing a $65 million USD lawsuit against Martin Shkreli in August 2015, arguing he had breached his duty of loyalty to the company, as well as unauthorized manipulation of the company’s funds.

Travere Therapeutics Inc. Projections

According to the TVTX Free Report, Travere Therapeutics Inc. has an expectation to deliver a year-over-year increase in earnings on higher revenues. This widely-known consensus outlook gave a sense of the company’s earnings portfolio. According to Zacks, this drug developer was expected to post a quarterly loss of seventy-two cents per share, representing a year-over-year charge of 69.6 percent. Revenues are still expected to be $56.28 million USD, which would be higher than the 10.4 percent from the previous year’s quarter. Investors here should keep in mind the direction of estimates, revisions, and other factors constantly face changes that come about through a series of events that can change the landscape of how the stock market responds to the situation.

However, there have been estimate revisions ahead of the company’s earnings release that offered clues to the current business conditions. Research has it the TVTX stock shows a positive surprise, at least according to analysts like Zacks as it points out it is difficult to properly predict an earnings beat with any degree of confidence between negative earnings readings and the ranking scores provided by market analysis. With this being said, betting on stocks that are expected to beat earnings expectations has proven to increase the odds of success. This is why TVTX stock is worth looking into as a favorable long-term investment opportunity. However, with this being said, investors would be wise to factor in all the pros and cons when dealing with a stock that has seen the kind of roller coaster ride TVTX has seen. With the focus of disease eradication being what it is, investors are pouring interest and money into companies like Travere Therapeutics Inc. that show promise.

Rare diseases, for the most part, have offered a range from no to limited treatment options, which is a medical condition that has prompted companies like Travere Therapeutics Inc. to improve upon. It has since advanced therapeutic candidates of rare disorders in nephrology, hepatology, and metabolism. The sponsoring of no-cost genetic testing that is aimed at improving the diagnostic odyssey for children born with cholestasis, partnering with patient advocacy organizations in order to meet the diverse and growing needs of patients and their families. This is all done with the assurance and education for its FDA-approved therapies.

As far as Travere Therapeutics Inc. has gone since Martin Shrkeli, the remnants of what he had done still remains. Although there have been great strides to permanently sever any ties with the company’s original founder, whenever searching Google for information about the company, Shrkeli’s name still comes up. Although smarter investors that do their homework and know more, there is still a sense of uncertainty about where Travere Therapeutics Inc. stands as a company, as well as its TVTX stock on the market.  When it boils down to whether or not Travere Therapeutics Inc.’s stock is worth the long-term investment, the answer still serves as a yes, but with caution. When it comes to the stock exchange, there is no such thing as a sure bet. The Black Friday stock market crash that took place in 1929 should still serve as a reminder that so much can change at the drop of a hat. Although there were a number of circumstances at the time that brought on the big crash, today’s times have shown to be just as volatile. Does this mean one should refrain from any kind of stock investment? The answer to that is no, but investing wisely is always the best route to take. Whether it’s short term or long-term, the wisest investment strategies are always those that are thoroughly researched before making that fateful judgment call whether or not it’s work the risk.

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