Intuitive Machines Inc. (NASDAQ:LUNR) stock rose about 5% in Friday’s premarket trading as investors eyed oversold technical conditions ahead of the company’s Nov. 12 earnings report.
Nasdaq futures gained 1.51%, while S&P 500 futures rose 0.12%, supporting broader market sentiment.
Intuitive Machines rebounded after an extended decline pushed its stock near its 52-week low.
The recovery comes ahead of next week’s earnings report, which could provide fresh insight into the space infrastructure company’s growth prospects.
Defense and aerospace stocks faced selling pressure Thursday following Democratic victories in the midterm elections.
Investors raised concerns that a Democrat-controlled Congress could challenge President Donald Trump’s proposed $1.5 trillion defense budget, creating uncertainty around Pentagon spending and government contracts, according to Benzinga Pro.
Technical Analysis
Intuitive Machines remains below its major moving averages, signaling continued weakness despite Friday’s rebound.
The stock trades 17.1% below its 20-day simple moving average (SMA) of $10.98 and 31.5% below its 50-day SMA of $13.29.
It also sits 39.6% below its 100-day SMA of $15.07 and 53.5% below its 200-day SMA of $19.55.
The relative strength index (RSI) stands at 29.17, indicating oversold conditions. However, that reading does not guarantee a sustained recovery.
The stock’s 52-week range spans $7.78 to $46.75, with $8 emerging as a key support level.
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Earnings Outlook
Intuitive Machines is scheduled to report earnings Nov. 12.
Analysts expect a loss of 12 cents per share, compared with a loss of 6 cents a year earlier.
Revenue is projected to reach $245.88 million, up from $52.44 million a year ago.
The stock carries a consensus Buy rating, with an average price forecast of $35.88 across 13 analysts.
B. Riley Securities recently lowered its price forecast to $34, while KeyBanc cut its forecast to $30. Macquarie initiated coverage with an Outperform rating and a $25 forecast.
ETF Exposure
Intuitive Machines accounts for 5.56% of the Defiance Drone and Modern Warfare ETF (NYSE:JEDI), 3.58% of the Global X Space Tech ETF (NASDAQ:ORBX) and 3.11% of the WisdomTree Space Economy Fund ETF (NASDAQ:WSPC).
LUNR Price Action
Intuitive Machines shares gained 4.99% to $9.05 in Friday’s premarket trading, according to Benzinga Pro.
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