Despite Valuation Concerns, This Lesser-Known Stock Is Hot at 10-Year Highs

• Liquidity Services (LQDT) demonstrates robust price momentum, recently hitting a new 10-year high.
• Shares are up more than 90% over the past year.
• LQDT maintains a 100% “Buy” technical rating from Barchart.
• Its valuation is stretched, and many analysts flag concerns that LQDT is now overvalued. Investors should proceed with caution. .

Today’s Featured Stock

Valued at $1.44 billion, Liquidity Services (LQDT) is a leading global provider of e-commerce marketplaces and software solutions that support the circular economy by enabling the sale, reuse, and management of surplus assets.

The company’s business model is built around online auction marketplaces that allow both public and private sector clients to sell surplus property, including consumer goods, real estate, vehicles, heavy equipment, and specialty assets.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. LQDT checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 13. Since that signal, LQDT is up 3.48%.

Barchart’s Technical Indicators for Liquidity Services

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Liquidity Services hit a 10-year high of $47.31 on Nov. 5.

• Liquidity Services has a Weighted Alpha of 84.11.
• LQDT has a 100% “Buy” opinion from Barchart.
• The stock has gained 90.78% over the past 52 weeks.
• Liquidity Services has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $45.30 with a 50-day moving average of $43.54.
• LQDT had 8 new highs and gained 4.96% in the last month.
• 60-month beta of 1.06.
• Relative Strength Index (RSI) is at 54.32.
• There’s a technical support level around $45.44.

Don’t Forget the Fundamentals

• $1.44 billion market capitalization.
• 38.66x trailing price-earnings ratio.
• Although analysts did not give revenue projections, I noted the company posted increases in revenue in all 5 of the previous years including a 31.20% increase last year.
• Earnings are estimated to increase 28.91% this year and an additional 11.52% next year.

Analyst and Investor Sentiment on Liquidity Services

• Wall Street analysts followed by Barchart give the stock 2 “Strong Buy” and 1 “Hold” opinion with price targets from $50 to $52.
• Value Line rates the stock “Above Average.”
• Morningstar thinks the stock is 22% overvalued with a fair value of $37.60.
• CFRA’s Market Scope rates the stock a “Hold.”
• 5,990 investors are following the stock on Seeking Alpha, which rates it a “Buy.”
• TipRanks’ analysts have a consensus price target of $50.
• Short interest is 3.54% of the float with 3.85 days to cover.

The Bottom Line on Liquidity Services

The company boasts excellent momentum and strong growth, supported by healthy profitability and modestly positive analyst revisions. While the valuation is stretched, short interest seems low. Robust operating performance and significant stock price gains contribute positively to its overall outlook.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance. 

On the date of publication, Jim Van Meerten did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.