RES Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
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Not a good buy right now. RES is in a broader uptrend (bullish moving averages), but momentum is fading (MACD histogram contracting) and near-term pattern stats point to higher downside risk over the next day/week. With the stock trading around/above several recent Wall Street price targets and earnings approaching (Feb 3 pre-market), the risk/reward for an impatient buyer is unfavorable today. Best stance is hold/avoid new buys at this level.
Trend is bullish but stretched and losing momentum. Price is above key moving averages with a bullish stack (SMA_5 > SMA_20 > SMA_200), which supports an intermediate uptrend. RSI(6) ~64 is neutral-to-slightly warm (not oversold), so it does not signal a dip-buy setup. MACD histogram is above zero (bullish) but positively contracting, suggesting upside momentum is weakening. Key levels: Pivot 6.435 (important near-term line), Support S1 6.13 then S2 5.941; Resistance R1 6.741 then R2 6.93. With current price ~6.615 sitting below nearby resistance (6.741) and the model pattern indicating a higher probability of short-term pullback (next day/week negative skew), the setup is not attractive for an immediate entry.
Intellectia Proprietary Trading Signals:
Dividend: declared $0.04 quarterly dividend (payable Mar 10,
supports shareholder-return narrative.
Sector backdrop per analysts: some commentary suggests U.S. land activity may be bottoming and cyclical tailwinds could improve into
Technical trend: longer-term moving-average structure remains bullish, which can attract trend-following buyers on pullbacks.
Near-term downside skew from pattern analysis: higher probability of declines over the next day/week.
Momentum fade: MACD is still positive but contracting, often preceding consolidation/pullbacks near resistance.
Earnings catalyst risk (QDEC 2025 results on 2026-02-03 pre-market): the stock can gap on results, which is unfavorable for an impatient entry without a clear edge.
Profitability pressure in latest reported quarter: net income, EPS, and gross margin all declined YoY despite revenue growth.
Wall Street targets/ratings: several targets cluster around ~$6 and ratings skew Neutral/Underweight, limiting perceived upside at ~$6.62.
Latest reported quarter: 2025/Q3. Revenue grew strongly to ~$447.1M (+32.42% YoY), but profitability weakened: Net Income ~$12.47M (-32.53% YoY), EPS $0.06 (-33.33% YoY), and Gross Margin ~15.28% (down YoY). This is a mixed quality growth picture—top-line expansion without earnings leverage—suggesting cost/price pressure or mix issues. That makes the stock more sensitive to any activity slowdown and raises the bar for the upcoming QDEC 2025 earnings (est. EPS ~0.07).
Recent trend: price targets have been nudged up (Citi to $6, Susquehanna to $6, Piper to $5), but ratings remain cautious—mostly Neutral with one Underweight, and Freedom Capital downgraded to Hold after Q3 citing valuation. Wall Street pros: signs the industry may be near the bottom of a downcycle and activity has held up better than feared. Cons: valuation/upside is limited around current levels and the company’s recent YoY profitability/margins deteriorated despite strong revenue growth. Influential trading: no recent congress trading data available; hedge funds/insiders show no significant recent directional trend.
