Is ArQule Inc. (NASDAQ:ARQL) a great bet right now?

ArQule Inc. (NASDAQ: ARQL) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 0.03 points up or 0.15% higher on the previous close. So what do we make of this stock that is clearly one of the hottest on the market now? The ARQL stock is trading at $20.00 from a close of $19.97 on 01/15/20. The day’s price range saw the stock hit a low of $19.98, while the highest price level was $20.00 during the intraday trading.

Is the ARQL stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $20.02. ArQule Inc. (NASDAQ: ARQL) has a 52-week price range of between $3.15 and $20.45. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 6171509, compared to its 3-months daily average volume of 4.43 million. In comparison, the average volume for the last 50 days stands at 5,276,036.

What about the stock’s price forecasts? ARQL had 9 analysts who offered their 12-month price predictions for the ArQule Inc. shares. The group has given the stock a consensus price target of $17.11, with the lowest forecast being put at $12.00. The highest estimate by the 9 analysts is $20.00. The median price target estimate of $20.00 for the stock represents a 0.0% fall in value from the previous price of $20.00. Looking at the 52-week price ranges, the stock’s current price level is 534.92% from its 52-week high price and -2.20% down from its 52-week low in the same period.

ArQule Inc. shares have plunged -0.10% over the past week, but its 1-month performance is in the red at -0.32%. Its performance in the current quarter is up 131.62%, while that figure shoots to 93.61% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 443.48%, with the year-to-date prices up by 0.20%.

The company has a market cap of 2.42 billion and a return on assets (ROA) of -27.00%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with ARQL’s at -33.20% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at -14.60%.

This mean rating was at 3.33 a month ago. ROTH Capital called it a Neutral stock on December 10, 2019, while RBC Capital Mkts rated it a Sector Perform in its note released on December 10, 2019.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of -$0.11 per share to -$0.08 per share. The average estimate by the 9 analysts for the ARQL shares was -$0.1 a share, while the company’s last-quarter results returned an EPS of -$0.07. Looking at the current EPS trends, seven days ago, ARQL had its Dec 2019 estimates at -$0.1 per share while the stock’s EPS was forecasted at the -$0.1, a month ago.

Let’s briefly check out revenue growth estimates for the company, which is put at -56.10% in the current quarter. However, the next quarter should see net revenue growth of over 38.10%, with analysts forecasting the company’s 12-month growth estimates at 173.10%. The next quarter should see revenue returns of between $200k and $7.5 million.The average revenue for the quarter is expected at $1.29 million, while for the next quarter, it jumps to $2.9 million. Sales growth for the year are estimated at 173.10%.