What is the best trade option for Arm Holdings plc. ADR (ARM) stock?

At the time of writing, Arm Holdings plc. ADR [ARM] stock is trading at $117.13, up 0.11%. It is a good measure of the stock’s recent performance to check whether the stock’s short-term value is rising or falling. The ARM shares have gain 6.05% over the last week, with a monthly amount drifted -35.35%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Arm Holdings plc. ADR [NASDAQ: ARM] stock has seen the most recent analyst activity on August 08, 2024, when Daiwa Securities upgraded its rating to a Outperform but kept the price target unchanged to $130 for it. Previously, Bernstein upgraded its rating to Mkt Perform on August 07, 2024, and elevated its price target to $100. On August 01, 2024, TD Cowen reiterated its Buy rating and revised its price target to $150 on the stock. HSBC Securities downgraded its rating to a Reduce. Morgan Stanley upgraded its rating to a Overweight and raised its price target to $190 on July 19, 2024. Exane BNP Paribas downgraded its rating to Neutral for this stock on April 19, 2024, but kept the price target unchanged to $100. In a note dated April 16, 2024, Evercore ISI initiated an Outperform rating and provided a target price of $156 on this stock.

For the past year, the stock price of Arm Holdings plc. ADR fluctuated between $46.50 and $188.75. Currently, Wall Street analysts expect the stock to reach $127 within the next 12 months. Arm Holdings plc. ADR [NASDAQ: ARM] shares were valued at $117.13 at the most recent close of the market. An investor can expect a potential return of 8.43% based on the average ARM price forecast.

Analyzing the ARM fundamentals

According to Arm Holdings plc. ADR [NASDAQ:ARM], the company’s sales were 3.50B for trailing twelve months, which represents an 39.11% jump. Gross Profit Margin for this corporation currently stands at 0.94% with Operating Profit Margin at 0.05%, Pretax Profit Margin comes in at 0.09%, and Net Profit Margin reading is 0.12%. To continue investigating profitability, this company’s Return on Assets is posted at 0.05, Equity is 0.08 and Total Capital is 0.03. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.04.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 114.30 points at the first support level, and at 111.47 for the second support level. However, for the 1st resistance point, the stock is sitting at 120.98, and for the 2nd resistance point, it is at 124.83.

Ratios To Look Out For

It is important to note that Arm Holdings plc. ADR [NASDAQ:ARM] has a current ratio of 3.61. Further, the Quick Ratio stands at 3.61, while the Cash Ratio is 1.38. Considering the valuation of this stock, the price to sales ratio is 36.44, the price to book ratio is 22.50 and price to earnings (TTM) ratio is 297.81.

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