Alert: Positive Investment/Fundamental Signals (9/30/24)-HUTCHMED (China) Limited (NASDAQ: HCM)

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Recent extremely meaningful positive changes in investment behavior have benefitted HUTCHMED (China) Limited (NASDAQ: HCM): the stock’s recent price rise disrupted its longer term downtrend, its longer term price trend turned up, and the stock rose on very heavy volume.

Limited positive changes in HUTCHMED (China) Limited (NASDAQ: HCM) fundamentals have recently occurred. Positive developments: the stock’s power rating rose above 70, and the consensus estimate for December, 2025 increased significantly. Negative development: significant quarterly earnings deceleration occurred.

In light of these very positive signals we are reviewing our current Overall Rating of C. We would view the shares with optimism pending completion of this review in the next several days.

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Current PriceTarget Research Rating

HCM’s future returns on capital are forecasted to be in line with the cost of capital. Accordingly, the company is expected to continue to be Value Creation neutral.

HUTCHMED (China) Limited has a current Value Trend Rating of C (Low Neutral). This rating combines very contradictory signals from two proprietary PTR measures of a stock’s attractiveness. HUTCHMED (China) Limited has a very low Appreciation Score of 8 but a very high Power Rating of 86, leading to the Low Neutral Value Trend Rating.

Recent Price Action

HUTCHMED (China) Limited (NASDAQ: HCM) stock closed at $19.53 on 9/30/24 after a large increase of 2.6%. Moreover, this advance was accompanied by exceptionally high trading volume at 226% of normal. The stock has risen 12.4% during the last week and has been exceptionally strong relative to the market over the last nine months.

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