Shares of Marathon Digital Holdings Inc. (NASDAQ: MARA) soared more than 16% on Monday at the time of writing, as cryptocurrency prices continued to extend last week’s gains. The price of bitcoin (BTC / USD) is up almost 19% since the start of last week, while Ethereum (ETH / USD) is up almost 30% last week.
Shares of Marathon Digital are still down nearly 50% from the highs of roughly $ 56.56 reached in April when Bitcoin hit the current all-time high of $ 64,789. Therefore, as the prices of BTC and other cryptocurrencies continue to rally, Marathon Digital will have more room to run before retesting its current year-to-date high.
Why Invest in Marathon Digital Stock in Q3 2021?
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Marathon Digital shares trade at an attractive forward P / E ratio of 8.53, making the shares an attractive opportunity to value investors. Analysts expect MARA’s earnings per share to grow 75.70% this year before increasing 30.36% next year.
Your 5-year average annual earnings growth of around 50% will be attractive to growing investors. And as the prices of bitcoins and cryptocurrencies continue to rise, MARA’s shares will also benefit. Therefore, Marathon Digital has several catalysts to drive the share price in the coming quarters. As such, it is not too late to buy despite this year’s gains of 161%.
Source – TradingView
Technical Summary: Marathon Digital Price Predictions for August 2021
Technically, Marathon Digital shares appear to be extending last week’s gains after surging 16% on Monday. Since Tuesday, the stock price has risen nearly 30%, but it seems like it still has more room to function. MARA shares have yet to reach overbought conditions at the 14-day RSI and are slightly below the 100-day moving average.
Therefore, investors can target extended earnings around $ 33.84 or higher at $ 38.11. The key support levels are $ 24.14 and $ 19.47.
Bottom Line: The Catalyst To Buy Marathon Digital Stock Now
Although Marathon Digital shares are up nearly 30% since last week, the shares appear to have more room to run, trading a few levels below the 100-day moving average.
The valuation of the company is attractive to value investors, while the prospects for earnings growth will attract growth investors. Therefore, it is not too late to buy MARA shares.
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