• Erasca (ERAS) has surged 460% over the past year, driven by strong technical momentum.
• ERAS hit a new 3-year high of $10.92 on Monday.
• Despite bullish technicals, ERAS has no revenue, is burning cash, and its future hinges on FDA drug approvals.
• Analyst sentiment is highly speculative, with price targets ranging from $2 to $16.

Today’s Featured Stock

Valued at $3.25 billion, Erasca (ERAS) is a clinical-stage precision oncology company singularly focused on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ERAS checks those boxes. Since the Trend Seeker issued a new “Buy” on Nov. 12, shares are up 300.12%.

Barchart Technical Indicators for Erasca

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Erasca scored a new 3-year high of $10.92 on Feb. 2.

• ERAS has a Weighted Alpha of +409.79.
• Erasca has a 100% “Buy” opinion from Barchart.
• The stock has gained 460.32% over the past 52 weeks.
• ERAS has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $10.74 with a 50-day moving average of $5.34.
• Erasca has made 13 new highs and is up 194.99% over the past month.
• Relative Strength Index (RSI) is at 79.10.
• There’s a technical support level around $10.24.

Don’t Forget the Fundamentals

• $3.25 billion market capitalization.
• Although analysts and investors are buying this stock, its future revenue and earnings are dependent on if the drugs it has in development are approved by the FDA

Analyst and Investor Sentiment on Erasca

• The analysts tracked by Barchart gave Erasca 8 “Strong Buy,” 2 “Hold,” and 1 “Moderate Sell” rating with price targets between $2 and $16. With price target ranges like this, you can only view analyst opinions as highly speculative.
• Value Line rates the stock “Average.”
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is undervalued by 13% with a fair value of $12.13.
• The only investor following the stock on Motley Fool thinks this the stock will not beat the market.
• 1,230 investors are following the stock on Seeking Alpha, which rates the stock a “Hold.”
• Short interest is 7.22% of the float with 7.72 days to cover the float.

The Bottom Line on Erasca

The company has no revenue and is burning through cash. It does have enough cash to keep going through 2028. Place a bet on red or black before you spin the wheel.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

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