FTEK Stock Price: Fuel Tech Inc may present a buy opportunity with post-doubling correction
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UNLOCK OFFER- NASDAQ: FTEK is set to fall on Wednesday after more than doubling on Tuesday.
- Robust earnings have catapulted FuelTech Inc shares higher.
- Hopes for a Biden boom for green stocks are also fueling the surge.
Even the most efficient motor needs to slow down from time to time – Fuel Tech Inc (NASDAQ: FTEK) is set to drop by over 16% on Thursday, according to premarket data. Shares of the Warrenville, Illinois-based firm are changing hands at just above $5 in early trade, down from the closing price of $6.04 on Tuesday.
The potential fall comes after FTEK stocks more than doubled on Tuesday, surging by a whopping 114%. The jump is an extended response to FuelTech's earnings report published earlier in the month. Consolidated revenues increased by 26.4% to $8.2 million in the previous period. Moreover, gross margins leaped to 72.4% of revenues. Excluding a settlement, the gap remains substantial at 40.7%.
The bottom line also improved due to a cost-cutting exercise, leaving FuelTech's total cash at $11.8 million at the end of the quarter.
Another, more immediate factor for the most recent surge comes from outgoing President Donald Trump's authorization to begin the transition to President-elect Joe Biden. Lower political tensions have lifted the broader stock market but also have an outsized impact on green companies.
The incoming administration is set to prioritize the climate emergency, dedicating as much as $2 trillion to sustainable energy infrastructure plans. Small companies with large potential like FuelTech with its Air Pollution Control (APC) products, are there to benefit.
FTEK stock forecast
The upcoming drop may serve as a buying opportunity. Even after the surge, the firm's market capitalization is just under $150 million. That is minuscule in comparison to the potential demand for green technologies in the world's largest economy.
The next upside target is the 52-week high of $7.04. Some support is at $2.82, the pre-doubling closing price.
- NASDAQ: FTEK is set to fall on Wednesday after more than doubling on Tuesday.
- Robust earnings have catapulted FuelTech Inc shares higher.
- Hopes for a Biden boom for green stocks are also fueling the surge.
Even the most efficient motor needs to slow down from time to time – Fuel Tech Inc (NASDAQ: FTEK) is set to drop by over 16% on Thursday, according to premarket data. Shares of the Warrenville, Illinois-based firm are changing hands at just above $5 in early trade, down from the closing price of $6.04 on Tuesday.
The potential fall comes after FTEK stocks more than doubled on Tuesday, surging by a whopping 114%. The jump is an extended response to FuelTech's earnings report published earlier in the month. Consolidated revenues increased by 26.4% to $8.2 million in the previous period. Moreover, gross margins leaped to 72.4% of revenues. Excluding a settlement, the gap remains substantial at 40.7%.
The bottom line also improved due to a cost-cutting exercise, leaving FuelTech's total cash at $11.8 million at the end of the quarter.
Another, more immediate factor for the most recent surge comes from outgoing President Donald Trump's authorization to begin the transition to President-elect Joe Biden. Lower political tensions have lifted the broader stock market but also have an outsized impact on green companies.
The incoming administration is set to prioritize the climate emergency, dedicating as much as $2 trillion to sustainable energy infrastructure plans. Small companies with large potential like FuelTech with its Air Pollution Control (APC) products, are there to benefit.
FTEK stock forecast
The upcoming drop may serve as a buying opportunity. Even after the surge, the firm's market capitalization is just under $150 million. That is minuscule in comparison to the potential demand for green technologies in the world's largest economy.
The next upside target is the 52-week high of $7.04. Some support is at $2.82, the pre-doubling closing price.
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