Should You Buy Gaotu Techedu Inc (GOTU) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
2.260
1 Day change
1.35%
52 Week Range
4.560
Analysis Updated At
2026/01/28
Not a good buy right now for a beginner long-term investor who wants to enter immediately. The stock is in a clear downtrend (bearish moving averages, negative MACD) and is sitting right on first support (~2.226). While it looks oversold and could bounce short-term, the higher-probability setup is to avoid buying into a bearish trend without a confirmed reversal—especially with losses widening in the latest quarter.
Technical Analysis
Price: 2.23 (closed), slightly down on the day (-0.45%). Trend remains bearish: SMA_200 > SMA_20 > SMA_5 indicates sustained downside momentum. MACD histogram is negative (-0.0207) and contracting, suggesting selling pressure may be easing but has not flipped bullish. RSI(6) at ~27.2 signals an oversold condition (potential for a short-term bounce), but oversold alone is not a durable long-term entry trigger. Key levels: Support S1=2.226 (price is essentially on it) and S2=2.147 below; Resistance/pivot area is 2.354, then R1=2.482. A cleaner technical buy would be a reclaim of the pivot (2.354+) and stabilization above it; otherwise a break under 2.226 raises downside risk toward ~2.15.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Options positioning is call-heavy (low put/call ratios), which generally reflects bullish/speculative sentiment. However, today’s absolute options activity is very small (total volume 71 contracts), so the sentiment signal is not very reliable. Implied volatility is very low relative to its own history (IV percentile ~2.8; IV rank ~7.23), suggesting the options market is not pricing major near-term moves. Overall: mildly bullish bias from positioning, but low-liquidity/low-volume makes it a weak signal.
Technical Summary
Sell
8
Buy
6
Positive Catalysts
1) Oversold technical condition (RSI ~27) near support (2.226) can create a short-term bounce setup. 2) Options market shows call-heavy positioning (put/call ratios low), implying some bullish leaning. 3) Pattern-based forward stats suggest modest upside potential (approx. +3.7% 1-week, +6.85% 1-month scenarios in similar pattern history).
Neutral/Negative Catalysts
3) No news catalysts in the last week to drive a rerating or trend change. 4) Hedge funds/insiders show neutral activity—no supportive accumulation signal from these groups.
Financial Performance
Latest quarter: 2025/Q3. Revenue grew strongly to 1,579,026,000 (+30.69% YoY), and gross margin improved to 66.08% (+2.56% YoY), which is constructive on the top line and profitability at the gross level. However, net income worsened to -147,121,000 (down -68.78% YoY) and EPS fell to -0.91 (down -66.91% YoY), indicating losses are expanding despite revenue growth—weakening the long-term investment case at this moment.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
No analyst rating/price target change data was provided, so recent Wall Street upgrades/downgrades and target revisions cannot be confirmed from this dataset. Pros view (inferred from fundamentals): strong revenue growth and improved gross margin. Cons view: widening losses and a still-bearish price trend, which typically keeps analysts cautious until profitability improves and/or the chart confirms a reversal.
Wall Street analysts forecast GOTU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOTU is 3.2 USD with a low forecast of 3.2 USD and a high forecast of 3.2 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.
1 Analyst Rating
Wall Street analysts forecast GOTU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOTU is 3.2 USD with a low forecast of 3.2 USD and a high forecast of 3.2 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.
