Fortrea (NASDAQ:FTRE) Shares Gap Up - Still a Buy?

Key Points

• Fortrea shares jumped from a prior close of $19.20 to open at $20.25, later trading near $20.64. The stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans positive, with a consensus “Moderate Buy” rating and a $17.75 average price target—below the latest trading price. Ratings include one Strong Buy, five Buys, four Holds, and one Sell.
• Fortrea exceeded quarterly expectations, reporting $0.16 earnings per share versus a $0.03 consensus estimate and revenue of $636.5 million versus $628.5 million expected. Several institutional investors also increased their holdings, although the company continues to report a negative net margin.

Shares of Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $19.20, but opened at $20.25. Fortrea shares last traded at $20.6360, with a volume of 217,928 shares traded.

Wall Street Analysts Forecast Growth

FTRE has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $14.00 price target on shares of Fortrea in a research note on Thursday, May 7th. Citigroup upped their price objective on Fortrea from $16.00 to $20.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Barclays increased their target price on Fortrea from $16.00 to $18.00 and gave the stock an "equal weight" rating in a research report on Wednesday, June 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Fortrea in a report on Friday, July 17th. Finally, Mizuho boosted their price target on Fortrea from $13.00 to $16.00 and gave the company a "neutral" rating in a research report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Fortrea has a consensus rating of "Moderate Buy" and a consensus price target of $17.75.

Fortrea Stock Performance

The company has a market capitalization of $1.98 billion, a price-to-earnings ratio of -4.26, a P/E/G ratio of 0.59 and a beta of 2.03. The stock has a 50 day simple moving average of $16.54 and a 200 day simple moving average of $13.74. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 1.98.

Fortrea (NASDAQ:FTRE - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.03 by $0.13. The business had revenue of $636.50 million for the quarter, compared to analysts' expectations of $628.50 million. Fortrea had a positive return on equity of 9.51% and a negative net margin of 16.50%. As a group, analysts anticipate that Fortrea Holdings Inc. will post 0.8 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fortrea

Several hedge funds and other institutional investors have recently modified their holdings of FTRE. Sanctuary Advisors LLC increased its holdings in shares of Fortrea by 1.7% in the 4th quarter. Sanctuary Advisors LLC now owns 36,648 shares of the company's stock worth $632,000 after acquiring an additional 627 shares during the period. Oregon Public Employees Retirement Fund increased its stake in shares of Fortrea by 3.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 21,166 shares of the company's stock valued at $365,000 after purchasing an additional 700 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of Fortrea by 9.5% in the first quarter. EverSource Wealth Advisors LLC now owns 10,936 shares of the company's stock valued at $103,000 after purchasing an additional 953 shares during the period. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Fortrea by 27.9% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,490 shares of the company's stock valued at $77,000 after buying an additional 980 shares during the last quarter. Finally, Larson Financial Group LLC raised its holdings in shares of Fortrea by 136.7% during the fourth quarter. Larson Financial Group LLC now owns 1,856 shares of the company's stock valued at $32,000 after buying an additional 1,072 shares during the last quarter.

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific's Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company's comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea's core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.

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