QuantumScape Stock Drops 13% Before Q3 Results as Technical Indicators Flash a Buy Signal
QuantumScape (QS) stock experienced a significant decline of over 13% on Wednesday, ahead of its Q3 earnings announcement. The report, expected after market hours, is anticipated to reveal a loss of $0.20 per share, a slight improvement compared to a loss of $0.23 in the same quarter last year.
Technical Indicators Present a Buy Signal
Despite the stock’s drop, technical indicators indicate potential upside. According to analyses from TipRanks, QS is currently on an upward trend. The following key indicators suggest a Buy:
- Moving Average Convergence Divergence (MACD): This momentum indicator signals a Buy, reflecting positive price changes.
- 50-day Exponential Moving Average (EMA): This is recorded at 12.49, while the stock’s current price is 13.41, suggesting bullish momentum.
- 20-day Exponential Moving Average: This also confirms a Buy signal.
- Rate of Change (ROC): Currently at 6.37, this momentum indicator indicates a strong uptrend.
- Williams %R: This indicator shows that the stock is neither overbought nor oversold, also indicating a Buy.
Analyst Consensus on QuantumScape
Wall Street analysts maintain a Hold consensus rating for QuantumScape stock, based on recent evaluations. The outlook comprises:
- One Buy rating
- Two Hold ratings
- One Sell rating
The average price target for QS is set at $9.00, which suggests a potential downside of approximately 33.73% from current levels. Investors are urged to monitor the upcoming earnings report closely, as it may impact stock performance and investor sentiment moving forward.
