Summary

• VNET Group, Inc. offers diverse hosting and cloud services in China, showing strong technical buy signals and significant recent price appreciation.

• The stock has gained 109.37% since the Trend Seeker buy signal on 12/27, with a 469.43% gain over the last year.

• Analysts have mixed opinions, with 8 strong buys and 1 sell, but MorningStar warns of overvaluation and competitive risks.

• Investors should consider VNET's volatility and speculative nature, using a disciplined investment strategy with diversification and regular stop loss reevaluation.

The Chart of the Day belongs to information technology services company VNET (VNET) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 12/27 the stock gained 109.37%.

VNET Price vs Daily Moving Averages:

Vnet (Barchart)

VNET Group, Inc., an investment holding company, provides hosting and related services in China. The company offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; and value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services. It also provides cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN services that extend customers' private networks by setting up connections through the public internet. In addition, the company provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1996 and is headquartered in Beijing, the People's Republic of China.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 482.82+ Weighted Alpha
• 469.43% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 10 new highs and up 72.59% in the last month
• Relative Strength Index 79.97%
• Technical support level at $8.49
• Recently traded at $8.94 with 50 day moving average of $5.16

Fundamental Factors:

• Market Cap $2.19 billion
• Revenue expected to grow 8.95% this year and another 11.09% next year
• Earnings estimated to increase 107.66% this year and an additional 311.67% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts issued 8 strong buy, 4 buy, and 1 sell opinion on the stock
• Their price targets between $3.98 and $10.72 with a consensus of $5.82 for a 35% loss

• MorningStar thinks the stock is 123 over valued and comments:"

  VNET's data centers are not significantly differentiated from those that others, including its biggest customers, could supply.VNET has spent too much and expanded too rapidly, and it will not hold up well if the industry cools and it can't cover its borrowings.VNET has very large and financially strong competitors in the three large Chinese telcos whose data centers already have four to seven times the total capacity of VNET’s, and who have aggressive expansion plans that can be funded by telecom profits. 

• There are 230 investors following the stock on Motley Fool and 149 think the stock will outperform the Market while 81 fell it won't
• 5,510 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

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