CleanSpark stock forecast after plunging 7.5% on FY 2021 earnings miss

on Dec 17, 2021
  • CleanSpark shares on Thursday plunged by more than 7%.
  • The stock plunged after earnings on Wednesday before swinging up for a net gain of 3.22%.
  • CleanSpark reported its FY2021 results Tuesday after markets closed, missing EPS estimates.

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On Thursday, CleanSpark Inc. (NASDAQ:CLSK) shares declined by more than 7%, erasing Wednesday’s post-earnings gains. The stock fell sharply Wednesday morning before bouncing back later for a net session gain of about 3.22%. 

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CleanSpark announced its full-year 2021 results Tuesday after markets closed, beating analyst expectations on revenue. However, its earnings per share fell short of estimates.

The company posted FY2021 GAAP earnings per share of -$0.75, missing the consensus for analyst expectations of -$0.40. On the other hand, revenue for the year increased 394% from FY2020 to $49.4 million, surpassing the average analyst expectation by $3.84 million.

The stock has plunged nearly 57% this year following Thursday’s decline.

Is CleanSpark a growth stock?

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From an investment perspective, CleanSpark shares trade at an exciting forward P/E ratio of 4.65, making the stock an attractive option for value investors.

Moreover, its growth prospects are compelling, with analysts predicting an EPS improvement of more than 60% this year and a further spike of nearly 135% next year.

Therefore, growth investors could also be interested in investing in CleanSpark shares.

Source – TradingView

Technically, CleanSpark seems to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted into the oversold conditions of the 14-day RSI.

Therefore, investors could target potential technical rebounds at about $14.85, or higher at $18.01. On the other hand, if the decline continues, CleanSpark could find support at $8.35, or lower at $5.01.

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