Not a Lot to Smile About With SmileDirectClub Stock

SmileDirectClub stock is down 81% in the last 12 months

Dec 15, 2022 at 12:26 PM
facebook X logo linkedin

Last week, UBS trimmed its price target on telehealth specialist SmileDirectClub Inc (NASDAQ:SDC) to 50 cents from $1.20. With stocks getting crushed left and right, many investors will flock to penny stocks for a cheaper way to score big profits. Is SDC a candidate for that strategy?

In a word, no. SDC is down 81% in the last 12 months, with its 20-day moving average applying consistent pressure since August. Last seen down 4.9% to trade at $0.49, 

SDC Stock Chart

SmileDirectClub’s bearish form can be heavily linked to its declining revenue. Since fiscal 2019, the company has seen a 32% decrease in yearly revenues. Estimates also indicate that it will end fiscal 2022 with a 24.1% decline in revenue. However, the business is expected to see a 1.1% increase in revenue for fiscal 2023.

Moreover, SmileDirectClub is expected to inch closer to profitability for fiscal 2022 and fiscal 2023. Its earnings are estimated to increase by 0.12 per share for fiscal 2022, going from -0.87 to -0.75, and by 0.11 for fiscal 2023, going from -0.75 to -0.64. Still, the company holds $816.06 million in total debt and only $120.18 million in cash on its balance sheet, making SDC an extremely high-risk play.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI