EWCZ Should I Buy
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European Wax Center Inc (EWCZ) is not a strong buy for a beginner, long-term investor at this time. The stock is in the process of being taken private at $5.80 per share, which limits its upside potential. Additionally, the legal investigations surrounding the acquisition and the lack of significant trading signals or positive catalysts make it a less compelling investment option.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is at 91.761, signaling the stock is overbought. The price is near a key resistance level (R2: 5.882), suggesting limited room for further upside. Moving averages are converging, indicating a lack of strong directional trend.
Gross margin also improved slightly. Analysts raised price targets to $5.80, reflecting the proposed acquisition price.
The stock is being taken private at $5.80 per share, capping potential upside. Legal investigations into the acquisition could create uncertainty. Revenue declined YoY in Q3 2025, and insider/hedge fund trading trends are neutral.
In Q3 2025, revenue dropped by 2.25% YoY to $54.19M. However, net income increased by 155.54% YoY to $3.78M, and EPS rose by 200% YoY to $0.09. Gross margin improved slightly to 63.98%.
Analysts have raised their price targets to $5.80, reflecting the proposed acquisition price, but ratings remain neutral or hold. Truist downgraded the stock to Hold from Buy due to the acquisition, and no competitive bids are expected.
