This week’s screen comes from a subscriber asking for a screen on stocks that “are bucking the trend.” To help answer his request, we use both RSI and relative positioning versus moving averages to find stocks holding up well despite weakness in the broader markets.
- RSI >80
- Price above 20-, 50-, and 200-day moving averages
- Positive YTD Performance
As we share below, the stocks in this scan are clearly bucking the trend this year. They have very overbought RSI levels and significant gains year to date. The companies are all relatively small, and four of the five are in the bio-sciences sector. As we warned last week, the stocks in this week’s scan have significant potential risks. That said, holders of these stocks have done very well for themselves this year.
Company Summaries (Corporate Summaries Courtesy of Zacks)
Turning Point Therapeutics (TPTX)
Turning Point Therapeutics is a clinical-stage biopharmaceutical company designing and developing novel small molecule, targeted oncology therapies to address key limitations of existing therapies and improve the lives of patients. Their internally developed and wholly owned pipeline of next-generation tyrosine kinase inhibitors (TKIs) targets numerous genetic drivers of cancer in both TKI-naive and TKI-pretreated patients. The pervasive challenges of intrinsic and acquired treatment resistance often limit the response rate and durability of existing therapies. One of these challenges is the emergence of solvent front mutations, which are a common cause of acquired resistance to currently approved therapies for ROS1, TRK and ALK kinases. They have developed a macrocycle platform enabling us to design proprietary small, compact TKIs with rigid three-dimensional structures that potentially bind to their targets with greater precision and affinity than other kinase inhibitors.
Sierra Oncology (SRRA)
Sierra Oncology, Inc. is a clinical-stage drug development company. It develops and markets drugs for the treatment of cancer. The product pipeline consists of SRA737 and SRA141. SRA737 is an orally bioavailable small molecule inhibitor of Checkpoint kinase 1, a key cell cycle checkpoint and central regulator of the DNA Damage Response network. SRA141 is an orally available small molecule inhibitor of cell division cycle 7kinase. Sierra Oncology, Inc., formerly known as ProNAi Therapeutics, Inc., is headquatered in Vancouver, Canada.
Permian Basin Royalty Trust (PBT)
PERMIAN BASIN ROYALTY TRUSTs principal assets are comprised of a 75% net overriding royalty interest carved out of Southland Royalty Company s fee mineral interests in the Waddell Ranch properties in Crane County, Tex. and a 95% net overriding royalty interest carved out of Southland Royalty Company s major producing royalty properties in Texas.
Arcellx Inc. is a biotechnology company reimagining cell therapy through the development of innovative immunotherapies for patients with cancer and other incurable diseases. Arcellx Inc. is based in GAITHERSBURG, Md.
Regencell BioScience Limited (RGC)
Regencell Bioscience Holdings Limited is an early-stage bioscience company which focuses on research, development and commercialization of Traditional Chinese Medicine for the treatment of neurocognitive disorders and degeneration, specifically Attention Deficit Hyperactivity Disorder and Autism Spectrum Disorder. Regencell Bioscience Holdings Limited is based in HONG KONG.
Michael Lebowitz, CFA is an Investment Analyst and Portfolio Manager for RIA Advisors. specializing in macroeconomic research, valuations, asset allocation, and risk management. RIA Contributing Editor and Research Director. CFA is an Investment Analyst and Portfolio Manager; Co-founder of 720 Global Research.