Is electroCore a Good Stock to Add to Your Healthcare Portfolio?

Asia's Tech News Daily

The shares of bioelectronic medicine company electroCore (ECOR) have been rallying lately on investor optimism surrounding its global expansion strategies. However, because the market remains volatile, with major benchmark indexes suffering intermittent retreats, will this penny stock be able to maintain its momentum in the near term? Read more to find out.

shutterstock.com – StockNews

electroCore, Inc. (ECOR) is a small-cap commercial-stage bioelectronic medicine company that is focused on developing non-invasive vagus nerve stimulation therapies. It has a market capitalization of $54.08 million. ECOR is headquartered in Basking Ridge, N.J.

Shares of ECOR have surged 31.3% in price year-to-date because investors are reacting positively to the company’s latest global expansion strategies. Over the past month, ECOR opened online shops in the United States and the United Kingdom. In addition, the company entered strategic agreements with Melidonia Health Services, Cyrus Medical Technologies, and Express Medical Solutions LLC to distribute its gammaCore nerve stimulator in Cyprus, the United Arab Emirates and Oman, Saudi Arabia, and Bahrain. Analysts expect ECOR’s revenues to rise in the coming quarters as its business expansion strategies yield new customers.

However, ECOR has yet to generate profits. Because the company is focusing on research and development and operational expansion, its bottom line is expected to remain negative in the near term. The Street expects ECOR’s EPS to remain negative until at least this year.

Here is what could shape ECOR’s performance in the near term:

Discounted Secondary Offering

ECOR announced a secondary public offering of 18 million shares of common stock on June 30 last year, priced at $1 per share. However, the company priced its shares at a 32% discount from its then trading price of $1.48. Following the offering, ECOR shares declined 25.2% in the next trading session. Furthermore, the secondary equity offering has increased the company’s total shares outstanding, thereby reducing its earnings per share and return on equity.

Negative Profit Margins

ECOR’s trailing-12-month ROE, ROA, and ROTC are negative 53.12%, 30.03%, and 34.17%, respectively. Its levered free cash flow is negative 166.44%. In addition, the company’s trailing-12-month net income margin is negative 380.37%, while its EBITDA margin is negative 413.5%.

POWR Ratings Reflect Bleak Prospects

ECOR has an overall D rating, which equates to Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

ECOR has a D grade for Stability, Momentum, and Quality. The stock’s relatively high 1.05 beta is in sync with its Stability grade. In addition, ECOR is currently trading below its 200-day moving average of $1.18, indicating a downtrend and justifying the Momentum grade. The company’s negative profit margins account for the Quality grade.

Of 190 stocks in the F-rated Medical – Pharmaceuticals industry, ECOR is ranked #119.

In addition to the grades I have highlighted above, view ECOR ratings for Growth, Value, and Sentiment here.

Bottom Line

ECOR is taking steps to improve its product quality and expand its operations internationally. However, the penny stock is highly receptive to market fluctuations. ECOR declined 13.1% intraday to close yesterday’s trading session at $0.765. The market is expected to remain volatile in the near term due to multiple macroeconomic headwinds. Thus, we think ECOR is best avoided now.

How Does electroCore, Inc. (ECOR) Stack Up Against its Peers?

While ECOR has a D rating in our proprietary rating system, one might want to consider looking at its industry peers, Johnson & Johnson (JNJ), Merck & Co. Inc. (MRK), and Novartis AG (NVS), which have an A (Strong Buy) rating.

Click here to checkout our Healthcare Sector Report

Want More Great Investing Ideas?

2022 Stock Market Outlook

3 Stocks to DOUBLE This Year

Top 10 Stocks for 2022

9 “Must Own” Growth Stocks


ECOR shares were trading at $0.72 per share on Friday morning, down $0.04 (-5.74%). Year-to-date, ECOR has gained 23.61%, versus a -2.53% rise in the benchmark S&P 500 index during the same period.



About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don’ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities.

More…

The post Is electroCore a Good Stock to Add to Your Healthcare Portfolio? appeared first on StockNews.com

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

AGNC Investment (AGNC) Stock Moves -0.73%: What You Should Know

In the latest trading session, AGNC Investment (AGNC) closed at $14.95, marking a -0.73% move from the previous day. This change was narrower than the S&P 500’s daily loss of ... Read more »

4 Marketing Strategies That Will Turn Your Customers Into Billboards for Your Business

People love to talk about great experiences. After all, when you really enjoy something, it’s human nature to want to tell others all about it! As a business owner, your ... Read more »

PTC India board to meet Jan 22 after allegations of irregularities in financial lending units

PTC India will hold its first board meeting on Saturday following recent allegations of lapses in governance and operations at its financial lending units. Rajib Mishra, the company’s chairman, did ... Read more »

Peloton Shares Rise After CEO Writes the Company is Considering Layoffs: 'We Now Need to Evaluate Our Organization Structure and Size of our Team'

On Thursday, Peloton CEO John Foley sent a memo to the Peloton team in the form of an open letter on its website, firing back at a report by CNBC alleging to have ... Read more »

In the Big Tech Metaverse, is privacy an option?

The world’s largest companies go all-in on Metaverse, an alternative virtual reality world combining work, leisure, services and more. While they look for the best way to make everyone join ... Read more »

Why Is The Airline Industry So Concerned With The 5G Network?

While AT&T Inc (NYSE:T) and Verizon Communications Inc (NYSE:VZ) announced ambitious plans to deploy 5G services in the U.S., the airline industry has raised concerns about how this technology could ... Read more »

Y Combinator-backed Invoid joins Credenc, a Capital India company to build Neobank for students

Invoid, a Y Combinator-backed firm, has joined Credenc, an online platform for education loans, to build a student focused Neobank, a first in India for college students. The company said ... Read more »

How to Be More Courageous in Life

Do you have a lot of fears in life? Are you struggling with the fear of failure, the fear of uncertainty and the fear of success? You don’t have to ... Read more »

An Inspiring Interview with Steve White, President, Special Counsel to the CEO of Comcast

Do you let circumstances define who you are, or do you take charge of your life no matter how challenging it is? I have the pleasure to interview Steve White, ... Read more »

Silver Jewellery Startup GIVA Raises $10 Million In Series A

Bengaluru-based silver jewellery startup GIVA, has raised  $10 million in its Series A funding led by Sixth Sense Ventures, A91 Partners and other marquee investors like India Quotient, Grand Anicut ... Read more »

Cloud Tailor Raises $1 Million In Pre-Series A

Cloud Tailor, a D2C platform that enables personalized women’s fashion, has raised $1.0 million in its pre-Series A round led by 35North Ventures and Mergerdomo. Pexels Two of Cloud Tailor’s ... Read more »

Big Tech Uses Data to the Detriment of Consumer Health, But We're Addicted. So What's the Solution?

As was brilliantly chronicled in the 2020 Netflix documentary The Social Dilemma, much of tech today uses data to tap into the human brain in a way that is detrimental to ... Read more »

Technology Startups Are Redefining Clean Energy

Humanity has changed rapidly this past decade. We carry cameras in our pockets, have the knowledge of the world at our fingertips, and are now entering the Metaverse. It’s clear ... Read more »

When You Work With A Strong Vision, Goals Become A Reality: Proved By This Young Entrepreneur Of Dubai

Most of the time, what we hear from people around us is how one needs to change lifestyle and inculcate great habits to create a more fulfilling life for oneself ... Read more »

How This 28-Year-Young Entrepreneur Reached Astounding Heights Of Success In Entrepreneurial World

There are many individuals who have broken the barriers and emerged as true winners in every sphere, especially the entrepreneurial realm, which has seen many enter into it and make ... Read more »

5 Easy Expense Decisions Entrepreneurs Can Make in 2022 to Increase their Impact

I love the energy of the new year. Ideas feel limitless, and possibility is everywhere. It’s an opportunity to make thoughtful tweaks in our personal and professional lives. The kind that ... Read more »

Why getting Congress to fund help for US children in poverty is so hard to do

The Build Back Better bill, the centerpiece of the Biden administration’s domestic policy, cleared the House of Representatives by a slender margin largely along party lines in November 2021. Mario ... Read more »

Agrowave Raises $2 Million In Pre-Series A

Agrowave, an agritech startup building a supply-driven farm-to-market mobility supply chain with focus on first-mile logistics and trades supply through an integrated network of mobile pickup stations, has raised $2 ... Read more »

Your Expert Opinion vs. the Customer's Wants

Behind the Review host and Yelp’s Small Business Expert, Emily Washcovick, shares a look at this week’s episode of the podcast. It’s okay to be particular about who’s touching your hair. For her first dye job, ... Read more »

Horrifying Video Shows Amazon Driver's Run-In With a Giant Bear in Driveway

Things could have ended bear-y badly for one Amazon delivery man in Upland, California. RingAmazon driver has run-in with bear One family in the rural town had been frequently getting ... Read more »

Decoding the Ethical Concerns With Respect To Technology

It was once said by Martina Navratilova that “Security used to be an inconvenience sometimes, but now it’s a necessity all the time.” The statement is indeed true. Humans at ... Read more »

Military Veterans Make Great Entrepreneurs, But Startups Aren't the Only Path to Success

We officially founded our non-profit organization VETtoCEO in 2013 and have been delivering an online entrepreneurship program specifically designed for military veterans since 2012. Our Entrepreneurship for Transitioning Warriors program ... Read more »

What to Consider When Making a Real Estate Move

Small business expansion is not an idea often explored until startups hit an inflection point in their business, usually tied to a growth event such as a new financing round ... Read more »

Man Awarded $9.4 Million After Being Served a Glass of Sanitizer Instead of Water at Cracker Barrel

At the onslaught of the coronavirus pandemic, sanitizer and cleaners quickly became coveted resources as suppliers and sellers tried to keep up with demand across the board. Education Images | ... Read more »

From Near Bankruptcy To 8 Figures: An Entrepreneurs Story Of Stocks, Online Business And Never Giving Up

Ahmed Alomari started out a small town kid from Michigan with big dreams of financial freedom. Handout In the last 7 years Ahmed or GMoney as he’s popularly known as ... Read more »

Federal Realty Investment Trust (FRT) Dips More Than Broader Markets: What You Should Know

Federal Realty Investment Trust (FRT) closed the most recent trading day at $123.40, moving -1.77% from the previous trading session. This change lagged the S&P 500’s 1.1% loss on the ... Read more »

Jeff Bezos Gets Roasted on Twitter, Compared to Evil Villain After Amazon Announces New 'Lord of the Rings' Show

Amazon’s Prime Video has long been teasing an original series based off of the fan-favorite Lord of the Rings series. Twitter via Jeff BezosTwitter via Jeff Bezos Though not much ... Read more »

Protect Your Business by Becoming a Cybersecurity Analyst

Cyber attacks on small businesses were on the rise in 2021, with 44 percent of small businesses reporting that they experienced a cyber attack. As such, cybersecurity is no longer just ... Read more »

Figaro's Pizza Inks Pact With FranGlobal To Expand In India

Figaro’s Italian Pizza has inked a deal with FranGlobal to open  hundreds of outlets throughout India over the next 25 years.  Pexels With this, Figaro’s Pizza, which is one of ... Read more »

The Dynamic Nature Of Social Media Has Fostered the Concept Of Blitzscaling

Businesses are getting more sophisticated as the decades pass. The traditional model of scaling an organization from one location to thousands of locations through large capital expenditures is being replaced ... Read more »

Autodesk (ADSK) Stock Moves -0.76%: What You Should Know

In the latest trading session, Autodesk (ADSK) closed at $252.41, marking a -0.76% move from the previous day. This change was narrower than the S&P 500’s 1.1% loss on the ... Read more »

How to Break Into the Creator Economy in a Digital Age

The way we consume entertainment and news has shifted tremendously within the past decade. Whereas once we relied solely on TVs or news outlets to consume information, now we tune ... Read more »

Securely Store Passwords, Payment Info, and More in One Place

For entrepreneurs, it’s crucial to stay organized. You’re running a business and you’re in charge of important decisions and accounts for both your business and employees. You can’t keep going ... Read more »

Lemonade (LMND) Gains As Market Dips: What You Should Know

Lemonade (LMND) closed the most recent trading day at $31.60, moving +1.09% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.1%. Elsewhere, the Dow ... Read more »

Livent (LTHM) Dips More Than Broader Markets: What You Should Know

Livent (LTHM) closed the most recent trading day at $22.74, moving -1.6% from the previous trading session. This change lagged the S&P 500’s 1.1% loss on the day. Meanwhile, the ... Read more »

4 Things to Know About Online Reviews (and Why You Can't Afford to Ignore Them)

For many business owners, brand reviews on sites like Yelp, GMB and other review platforms may sometimes seem a little like background noise — unavoidable and always there, but also easy to ... Read more »

Searching for a Franchise for the First Time? Here are 6 Tips to Consider

With over 3,000 different franchise concepts to choose from, the intense search to find the perfect match for your goals, income potential and lifestyle can leave you chomping at the ... Read more »

Khelgully Raises INR 3.1 Crore In Seed Funding

Bangalore-based social e-sports RMG platform, Khelgully, has raised INR 3.1 crore in Seed funding round led by Titan Capital, along with prominent angel investors. Pexels  Khelgully operates on the real ... Read more »

How Newsletter Sponsorships Can Maximize Your Marketing

You want to maximize your marketing efforts and be where viewers are as a business. But very few are using the sponsored newsletter to grow their customer leads. Newsletter sponsorships ... Read more »

5 Marketing Strategies Business Owners Should Start in 2022

Though infinitely better than 2020, 2021 had its own unique challenges. With 2022 off to its start, it’s a chance to start fresh and do all the stuff we swore we’d ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic