Hirsch explained that if the pandemic taught us anything it's that consumers don't like buying prescriptions by mail. That's what makes GoodRx so valuable, he said, patients get the best prices and can still pick up at their favorite pharmacies.
Everyone wants patients to save money, including doctors and pharmacists, Hirsch added. That's why GoodRx continues to grow via word of mouth and referrals.
GoodRX is partnering with companies like DoorDash (DASH) to help those in the gig economy stay healthy and have better access to affordable health care.
In our last review of GDRX on April 15 we recommended "Aggressive traders could go long GDRX at current levels and on strength above $42. Risk to $32."
In this updated daily bar chart of GDRX, below, we can see that prices did not rally to or above $42 to give us a buy signal. Good, as prices eventually declined to a new low in May. GDRX rallied into early June and pulled back again into early July. GDRX has not made a new low for the move down so for now we can be optimistic that we might be witnessing a change in trend from down to sideways or even up.
Prices are below the short-term 20-day and 50-day moving averages. The On-Balance-Volume (OBV) line is still in a downtrend and telling us that sellers of GDRX are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and bearish.
In this weekly Japanese candlestick chart of GDRX, below, we can see a lower shadow below $30 in early May as traders rejected those low prices. This is hopeful. The doji in early June marks the top reversal. A weekly close above $40 is needed to generate a more bullish picture.
The OBV line and the MACD oscillator are bearish.
In this daily Point and Figure chart of GDRX, below, we can see that the software is projecting the $26 area as a potential downside price target.
Bottom line strategy: As someone who has already used up their entire FSA allocation, saving money on drugs is a wonderful idea but the charts and indicators of GDRX are just not giving us the same impression. Avoid the long side of GDRX until we see evidence of a durable bottom.