AVNS Should I Buy
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Avanos Medical Inc (AVNS) is not a strong buy for a beginner, long-term investor at this time. While the technical indicators show some bullish trends, the company's financial performance is concerning, with declining net income, EPS, and gross margin. Additionally, there are no significant positive catalysts or strong trading signals to justify an immediate purchase. It is better to wait for clearer signs of financial recovery or stronger market sentiment before considering an investment.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), and the MACD histogram is positive at 0.0754, indicating a bullish trend. However, the RSI at 76.202 is in the neutral zone, and the stock is trading near its resistance level (R1: 15.226). These suggest limited immediate upside potential.
Upcoming Q4 and full-year 2025 earnings call on February 25, 2026, which may provide more clarity on the company's performance and future outlook.
Declining financial performance in Q3 2025, with net income dropping by -132.56% YoY and EPS declining by -133.33% YoY. Gross margin also fell by -11.28% YoY. Additionally, no significant insider or hedge fund trading trends were observed.
In Q3 2025, revenue increased by 4.34% YoY to $177.8M. However, net income dropped to -$1.4M (-132.56% YoY), EPS fell to -0.03 (-133.33% YoY), and gross margin declined to 48.37 (-11.28% YoY). These metrics indicate financial struggles despite slight revenue growth.
Barclays recently raised the price target for AVNS to $11 from $9 and maintained an Overweight rating, citing improved estimates post-Q4 preannouncement. William Blair initiated coverage with an Outperform rating, highlighting AVNS as an attractive smid-cap healthcare services holding. However, these ratings are not recent enough to reflect the latest market conditions.
