An anti-Alzheimer’s drug could enhance this high-risk action. Is it worth buying it here?

• vTv Therapeutics (VTVT) is a $156 million biopharmaceutical company focused on small molecule drugs for Alzheimer’s, diabetes and inflammatory disorders, all in clinical trials.

• VTVT has surged 182% over the past year, hitting a two-year high, with strong technical momentum.

• Wall Street is leaning toward “strong buy” with targets of up to $47, but some advisors are more cautious.

• VTVT is a speculative and technically driven company with very uncertain fundamentals because all of its revenues and profits depend on unproven pipeline assets.

Valued at $156 million, vTv Therapeutics (VTVT) is a biopharmaceutical company dedicated to the discovery and development of orally administered small molecule drug candidates to meet unmet medical needs.

Its drug candidate for the treatment of Alzheimer’s disease is azeliragon TTP488, which is in Phase 3 clinical trials, and it has other candidates for type 1 and type 2 diabetes, cancers, psoriasis and COPD, among others.

I found today’s Chart of the Day using Barchart’s powerful selection features to select stocks with the highest technical Buy signals; current momentum superior in both strength and direction; and a “buy” signal from Trend Seeker. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. VTVT checks those boxes. Since Trend Seeker signaled a new “buy” on December 8, the stock has gained 35.86%.

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. Therefore, the indicator numbers shown below may not match what you see live on the Barchart.com website when you read this report. These technical indicators form Barchart’s opinion on a particular stock.

vtv Therapeutics hit a new 2-year high of $41.49 on December 31.

• VTVT has a weighted alpha of +225.52.

• vTv Therapeutics has a 100% “buy” opinion on Barchart.

• The stock gained 182.36% over the past year.

• VTVT has its Trend Seeker “Buy” signal intact.

• The stock recently traded at $41.35 with a 50-day moving average of $30.06.

• vTv Therapeutics hit 14 new highs and gained 51.55% in the last month.

• The Relative Strength Index (RSI) is at 77.02.

• There is a technical support level around $38.50.

• Market cap of $156 million.

• Since both future revenue and earnings depend on drugs that are still in testing stages, it is difficult to project the future fundamentals of this stock.

• Wall Street analysts tracked by Barchart have given 2 “Strong Buy” and 1 “Hold” opinions on the stock with price targets between $35 and $47.

• Value Line rates the stock as “Average.”

• CFRA’s MarketScope Advisor rates the stock a “Sell.”

• Morningstar believes that even with the stock’s recent rise, it is undervalued by 22% with a fair value of $51.71.

• 76 investors following Motley Fool stock believe it will outperform the market, while 154 believe it will not.

• 35,850 investors are monitoring the stock on Searching Alpha, which rates the stock a “Strong Buy.”

• Short-term interest is low: 0.42% of the float.

This action is a purely technical play. Its low market cap makes it difficult for short sellers to take a position, and its future revenue and earnings are just guesses.

Additional Disclosure: The bar chart of the day highlights stocks that are experiencing exceptional appreciation from current prices. They are not intended to be purchase recommendations, as these stocks are extremely volatile and speculative. If you decide to add one of these stocks to your investment portfolio, we strongly recommend that you follow a default diversification and trailing stop loss discipline that is consistent with your personal investment risk tolerance.

At the date of publication, Jim Van Meerten had a position at: VTVT. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com