Should I Buy FRD? FRD 2026 Analysis

Should You Buy Friedman Industries Inc (FRD) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

18.620

1 Day change

52 Week Range

23.500

Analysis Updated At

2026/01/28

FRD is not a good buy right now for a beginner, long-term investor who wants to deploy capital immediately. The stock is sitting just above support, but technical momentum is still weakening (bearish MACD), there are no proprietary buy signals today, and the latest quarter shows sharply weaker profitability despite strong revenue growth. Best stance today: HOLD/WAIT rather than buy.

Technical Analysis

Price/levels: FRD closed at 18.57, sitting just above S1 support (18.509) and below the pivot (19.357). This is a "near-support" zone, but it has not reclaimed key resistance. Momentum: MACD histogram is -0.114 (below zero) and negatively expanding, which signals bearish momentum is still building. RSI: RSI(6) ~29, which is near oversold conditions and can support a bounce, but by itself it’s not a confirmed trend reversal. Moving averages: Converging MAs suggest the stock is compressing rather than trending strongly upward; combined with bearish MACD, the current edge favors downside/sideways until a reversal confirms. Near-term probabilistic trend: Similar-pattern analysis indicates ~70% chance of about -0.3% next day, +0.51% next week, and +4.43% next month—mildly constructive over a month but not strong enough to override the current bearish momentum. Intellectia Proprietary Trading Signals **Intellectia Proprietary Trading Signals** - [AI Stock Picker](module://ai_stock_pick): no signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock recently.

Options Data

Positive Catalysts

Upcoming earnings (2026-02-05 after hours) can act as a catalyst if margins/profits stabilize.
Revenue grew strongly in 2026/Q2 (+42.74% YoY).
Gross margin improved to 16.64 (+3.42% YoY), which is a constructive operating signal if it persists.
Hedge fund and insider trading trends are neutral (no active selling pressure indicated from these groups).

Neutral/Negative Catalysts

Profitability deteriorated sharply in 2026/Q2: Net income 2.21M (-426.92% YoY) and EPS 0.32 (-420.00% YoY), a major red flag for long-term compounding.
Technical momentum is currently bearish (MACD negative and expanding).
No recent news flow to support a sentiment-driven re-rating.
No congress trading data available in the last 90 days (no external confidence signal from that channel).

Financial Performance

Latest reported quarter: 2026/Q2. Growth: Revenue increased to $152.383M (+42.74% YoY), showing strong top-line expansion. Profit trend: Net income fell to $2.21M (-426.92% YoY) and EPS dropped to $0.32 (-420.00% YoY), indicating a severe downturn in earnings power versus last year. Margins: Gross margin improved to 16.64 (+3.42% YoY), but the bottom-line collapse suggests higher costs/operating pressures or non-operating impacts are overwhelming the margin improvement. Bottom line: Strong sales growth but unstable earnings quality—this mix is not ideal for a beginner long-term buy today.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No recent analyst rating or price target change data was provided (and coverage is often limited for smaller-cap names like FRD). Wall Street-style view based on the provided data: Pros—strong revenue growth and improving gross margin. Cons—major YoY earnings deterioration and currently bearish technical momentum. Net: not compelling enough to buy immediately.

Analyst Rating

Wall Street analysts forecast FRD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRD is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy

Hold

Sell

Current: 18.620

Low

Averages

High