FTRE stock touches 52-week low at $6.1 amid sharp annual decline

Published 04/04/2025, 16:44
FTRE stock touches 52-week low at $6.1 amid sharp annual decline

Fortrea Holdings (FTRE) stock has plummeted to $6.36, near its 52-week low of $6.73, representing an 82% decline over the past year. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while management has been actively buying back shares. This significant drop reflects a tumultuous period for the $612 million market cap firm, with investors showing concern over its performance. Despite current challenges, InvestingPro data suggests the company is undervalued, with analyst price targets ranging from $9 to $15.50, and net income expected to grow this year. For deeper insights, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering this and 1,400+ other US stocks.

In other recent news, Fortrea Holdings has reported lower-than-expected earnings and revenue for the fourth quarter, with an EPS of $0.18, falling short of the analyst estimate of $0.42. The company also saw a decrease in quarterly revenue to $697 million, compared to the expected $813 million. Fortrea’s full-year guidance for 2025 anticipates revenues between $2.45 billion and $2.55 billion, below the consensus estimate of $2.74 billion. Fitch Ratings has downgraded Fortrea’s credit rating due to a weakening credit profile, predicting a 7.3% decline in revenues for 2025, with a return to growth expected in 2026. Additionally, TD Cowen and Citi have both reduced their price targets for Fortrea, to $11 and $12, respectively, maintaining a Hold and Neutral rating on the stock. These adjustments follow Fortrea’s recent earnings call and reflect ongoing challenges in its financial performance. In a strategic move, Fortrea has appointed Erin L. Russell as a new director, bringing her extensive experience in finance and healthcare to the board. These developments indicate a challenging period for Fortrea as it navigates the evolving landscape of the CRO industry.

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