Tempus AI Inc (NASDAQ:TEM) shares are trading higher Monday morning after the company announced it has received U.S. Food and Drug Administration 510(k) clearance for its RNA-based Tempus xR IVD device.
What To Know: Per the company, this in vitro diagnostic tool utilizes next-generation sequencing to analyze RNA from tumor samples, aiding in the identification of molecular pathways and networks integral to disease progression.
The xR IVD assay is engineered to support biopharmaceutical companies in the development of novel cancer therapies by pinpointing patients with the highest probability of responding to specific treatments, which can foster more efficient clinical trials.
This regulatory update could unlock new commercial avenues for Tempus with its biopharma collaborators, as the company works to cement its role in oncology therapeutic research and development.
Technical Momentum: According to data from Benzinga Pro, Tempus AI is currently trading at $92.99, reflecting a notable daily increase of 5.38%.
The stock is significantly above its 50-day moving average of $70.07, indicating strong upward momentum. The recent price action suggests a bullish trend, with potential resistance near the 52-week high of $91.45.
Valuation Context: TEM has a market capitalization of $16.15 billion and a P/E ratio of 41.04, which indicates a premium valuation relative to its earnings. The absence of a forward P/E suggests uncertainty in future earnings projections, which may impact investor sentiment.
Benzinga Edge Rankings: Highlighting the stock’s positive movement, Benzinga Edge rankings show Tempus AI with a strong Momentum score of 89.92.
How To Buy TEM Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Tempus AI’s case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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