Should I Buy MEG? MEG 2026 Analysis

Should You Buy Montrose Environmental Group Inc (MEG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

24.690

1 Day change

4.93%

52 Week Range

32.000

Analysis Updated At

2026/02/05

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Not a good buy right now for an impatient buyer: price is pressing into near-term resistance (R1 ~23.83) while the broader trend remains bearish (SMA200 > SMA20 > SMA5).
Short-term momentum has improved (MACD turning up, RSI neutral-bullish), but the setup looks more like a bounce into resistance than a fresh breakout entry.
Options positioning is very call-heavy (bullish), yet overall option activity is thin; sentiment alone isn’t enough to override the bearish moving-average structure.
Upcoming earnings (Q4/FY2025) is the next major catalyst; buying immediately ahead of it is more of an event bet than a technically clean entry.

Technical Analysis

Trend: Bearish overall, with moving averages stacked negatively (SMA_200 > SMA_20 > SMA_5) indicating the intermediate/long trend is still down.
Momentum: MACD histogram is positive (0.169) and expanding, suggesting a short-term upswing/bounce is underway.
RSI: RSI_6 at ~58.7 (neutral-to-slightly bullish), not overbought; supports the idea of a bounce but not a strong breakout signal.
Levels: Pivot ~22.852 is the key “line in the sand” support; immediate resistance is R1 ~23.83 (very close to current 23.71), then R2 ~24.434.
Pattern-based expectation: Similar-pattern stats imply ~-0.94% next day, ~-1.56% next week, but ~+8.12% next month—near-term choppiness with better medium-term upside if support holds.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Extremely low put-call open interest ratio (0.04) = strong call tilt (bullish sentiment/positioning).
Volume: Put volume effectively zero today (put-call volume ratio 0.0) with only 7 calls traded—sentiment is bullish but participation is light.
Volatility: 30D IV ~61.8 vs HV ~56.5; IV rank ~13 and IV percentile ~23.9 indicates volatility is relatively low versus its recent history (not a panic/fear regime).

Technical Summary

Sell

Buy

Positive Catalysts

- Upcoming earnings event (Q4/FY2025 results + guidance) can reset the narrative if revenue growth persists and profitability inflects.
- Analyst stance remains constructive: Barclays reiterated Overweight and raised PT to $36 (large upside vs ~$23.7).
- Short-term momentum improvement (positive/expanding MACD) could support a continuation bounce if price clears ~23.83 and holds above it.

Neutral/Negative Catalysts

- Technical structure is still bearish (downtrend MA stack), increasing risk that rallies fade near resistance.
- Near-term overhead resistance is immediate (R1 ~23.83); upside may be capped without a clear breakout.
- Profitability trend in the latest reported quarter is weak YoY (net income and EPS down sharply), which could make the upcoming report more sensitive to any margin/guidance disappointment.
- No supportive flow signals from insiders/hedge funds: both reported as neutral.

Financial Performance

Latest quarter provided: 2025/Q3.
Revenue: $224.888M, +25.86% YoY (strong top-line growth).
Profitability: Net income $8.378M, -162.93% YoY; EPS $0.21, -153.85% YoY (material YoY deterioration).
Margins: Gross margin 33.64%, up slightly (+0.45 YoY), but not enough to prevent bottom-line decline—suggests higher operating costs/other items pressured earnings.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent change: (2025-11-07) Barclays raised price target to $36 from $35 and maintained Overweight.
Wall Street “pros” view: Strong organic growth and cross-selling momentum cited; large implied upside versus current price.
Wall Street “cons” view (based on current fundamentals/price action): Profitability has been volatile/weak YoY and the chart trend remains bearish, making timing less attractive for an impatient entry today.

6 Analyst Rating

Wall Street analysts forecast MEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MEG is 33.5 USD with a low forecast of 32 USD and a high forecast of 36 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

2 Hold

0 Sell

Moderate Buy

Current: 23.530

Low

Averages

33.5

High

Current: 23.530

Low

Averages

33.5

High

Barclays

William Grippin

Overweight

maintain

$35 -> $36

AI Analysis

2025-11-07

Reason

Barclays

William Grippin

Price Target

$35 -> $36

AI Analysis

2025-11-07

maintain

Overweight

Reason

Barclays analyst William Grippin raised the firm's price target on Montrose Environmental to $36 from $35 and keeps an Overweight rating on the shares. The company reported a solid Q3, driven by strong organic growth and cross-selling initiatives, the analyst tells investors in a research note.

JPMorgan

Neutral

maintain

$26 -> $33

2025-10-14

Reason

JPMorgan

Price Target

$26 -> $33

2025-10-14

maintain

Neutral

Reason

JPMorgan raised the firm's price target on Montrose Environmental to $33 from $26 and keeps a Neutral rating on the shares. The firm adjusted targets in the machinery and waste services group ahead of the Q3 reports. The sector has historically underperformed in the three months after the first Federal Reserve rate cut and another escalation of tariffs on Chinese goods should impact Q4 earnings for most companies, the analyst tells investors in a research note. JPMorgan established December 2026 price targets versus December 2025 previously.

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MEG Should I Buy

MEG Should I Buy

Should You Buy Montrose Environmental Group Inc (MEG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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