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Business

Quant Under Scrutiny as HCP, Inc. (NYSE:HCP) Magic Formula Rank Touches 10773

Checking in on some valuation rankings, HCP, Inc. (NYSE:HCP) has a Value Composite score of 63. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 51. 

HCP, Inc. (NYSE:HCP) presently has a current ratio of 2.64. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

Return on Assets

There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for HCP, Inc. (NYSE:HCP) is 0.012152. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

HCP, Inc. (NYSE:HCP)’s Leverage Ratio was recently noted as 0.503899. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.

ERP5 Rank

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of HCP, Inc. (NYSE:HCP) is 12074. The lower the ERP5 rank, the more undervalued a company is thought to be.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of HCP, Inc. (NYSE:HCP) is 0.051996.

Ever wonder how investors predict positive share price momentum? The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average. The SMA 50/200 for HCP, Inc. (NYSE:HCP) is currently 1.11437. If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum. If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

Magic Formula

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of HCP, Inc. (NYSE:HCP) is 10773. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of HCP, Inc. (NYSE:HCP) is 21.3514. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of HCP, Inc. (NYSE:HCP) is 26.4177. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 22.5439.

Yield

After a recent scan, we can see that HCP, Inc. (NYSE:HCP) has a Shareholder Yield of 0.051134 and a Shareholder Yield (Mebane Faber) of 0.08031. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

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Business

Following the Projections for Cleveland-Cliffs Inc. (NYSE:CLF)

Sell-side analysts are projecting that Cleveland-Cliffs Inc. (NYSE:CLF) will report a current quarter EPS of -.18 when the company issues their next quarterly report. This is the consensus number according to data provided by Zacks Research. This estimate is using projections given by 3 sell-side analysts. Last quarter, the company posted a quarterly EPS of .25. How the estimated EPS differs from the actual earnings number is what investors will be paying particularly close attention to. Analysts covering the stock are typically very busy during earnings season. Before the release, they might be reviewing and updating estimates. After the earnings release, they will closely review the reported data and update accordingly. Sifting through the numbers after the report may allow investors to add another piece of data to the investing equation.

Investors may be taking a closer look at holdings and trying to decide which way the stock market will lean in the second half of the year. Maybe there are some surprising winners, and the decision needs to be made to either sell for a profit or hold on for further potential gains. Maybe there are some losers that are being held onto with the hope of a rebound. Sometimes investors may get too emotionally attached to certain stocks. Keeping unbiased focus on the market may help provide the portfolio with an added boost. Nobody knows for sure what will transpire over the next few quarters. As earnings reports flow in, investors will be monitoring which companies provide the biggest surprises.

Taking a look at some target price information, we note that shares of Cleveland-Cliffs Inc. (NYSE:CLF) presently have an average target price of $8.65. This is the consensus target price using estimates offered by analysts polled by Zacks Research. Sell-side analysts can calculate price target projections using various methods. Many investors will track stock target prices, especially when analysts make changes to the target. A thorough research report will generally give detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the data to help with their own stock research.

Let’s shift the focus and look at some historical stock price action on shares of Cleveland-Cliffs Inc. (NYSE:CLF). After a recent market scan, we have seen that the stock has been trading near the $4.65 level. Investors may also be tracking the current stock price in relation to its 52-week high and low. The 52-week high is currently sitting at $11.3, and the 52-week low is $4.65. When the stock starts moving towards the 52-week high or 52-week low, investors may pay added attention to see if there will be a breakthrough that level. Over the last 12 weeks, the stock has moved -37.83%. Since the beginning of the calendar year, we can see that shares have changed -43.91%. Over the past 4 weeks, shares have moved 1.04518%. Over the previous 5 sessions, the stock has moved 43%.

Sell-side Street analysts often offer stock ratings for companies that they cover. Based on analysts polled by Zacks Research, the present average broker rating on shares of Cleveland-Cliffs Inc. (NYSE:CLF) is presently -34.88. This average rating includes analysts who have given Sell, Buy and Hold ratings on the equity. This rating uses a numerical recommendation scale from 1 to 5. A score of 1 would represent a Buy recommendation, and a score of 5 would indicate a Sell recommendation. Out of all the analysts providing recommendations, 6 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Some dedicated market watchers will preach the old adage, nothing ventured nothing gained. Some may adhere to the slow and steady mindset. The correct play for one investor may not be the same for another. Some may choose to be fully invested while others may keep some cash on the sidelines. Active stock market investors may have to find that perfect balance between being too risky or playing it too safe. If the market keeps charging higher in the second half of the year, investors may have to decide whether to take profits, or let it ride.   

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Business

Quant Under Review as Incyte Corporation (NasdaqGS:INCY)’s MF Rank Touches 12235

Here we will take a look at several key ratios and valuation metrics for shares of Incyte Corporation (NasdaqGS:INCY), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the firm’s net asset value per share to it’s current price.  This is helpful in determining how the market values the company compared to it’s actual worth.  The Book to Market value of Incyte Corporation currently stands at 0.133228.

Volatility & Price
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Incyte Corporation (NasdaqGS:INCY) is 44.0036. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Incyte Corporation (NasdaqGS:INCY) is 44.3826. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 35.7416.

We can now take a quick look at some historical stock price index data. Incyte Corporation (NasdaqGS:INCY) presently has a 10 month price index of 0.76531. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.63029, the 24 month is 0.62148, and the 36 month is 0.61547. Narrowing in a bit closer, the 5 month price index is 0.96951, the 3 month is 0.924, and the 1 month is currently 0.93077.

F Score, ERP5 and Magic Formula

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Incyte Corporation (NasdaqGS:INCY) is 3. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Incyte Corporation (NasdaqGS:INCY) is 14500. The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Incyte Corporation (NasdaqGS:INCY) is 12235. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Leverage Ratio of Incyte Corporation (NasdaqGS:INCY) is 0.010164. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

The Q.i. Value of Incyte Corporation (NasdaqGS:INCY) is 59. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be. The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Incyte Corporation (NasdaqGS:INCY) is 78. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Incyte Corporation (NasdaqGS:INCY) is 78.

C-Score
Incyte Corporation (NasdaqGS:INCY) currently has a Montier C-score of -1. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

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Business

Cintas Corporation (NasdaqGS:CTAS) Touches a Volatility Reading of 30.6235

In trying to calculate the current valuation of Cintas Corporation (NasdaqGS:CTAS) shares, we note that the Book to Market ratio of the stock stands at 0.171421. It’s commonly accepted that a Book to Market ratio greater than one indicates that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is calculated by dividing the market price per share by book value per share.  

We can also take a look at some stock volatility data on shares of Cintas Corporation (NasdaqGS:CTAS). The 12 month volatility is currently 24.2077. The 6 month volatility is noted at 25.9038, and the 3 month is recorded at 30.6235. When following the volatility of a stock, investors may be challenged with trying to decipher the correct combination of risk-reward to help maximize returns. As with any strategy, it is important to carefully consider risk and other market factors that might be in play when examining stock volatility levels.

Investors may be looking at the Piotroski F-Score when doing value analysis. The F-Score was developed to help find company stocks that have solid fundamentals, and to separate out weaker companies. Piotroski’s F-Score uses nine tests based on company financial statements. Cintas Corporation (NasdaqGS:CTAS) currently has a Piotroski F-Score of 6. One point is given for piece of criteria that is met. Typically, a stock with a high score of 8 or 9 would be seen as strong, and a stock scoring on the lower end between 0 and 2 would be viewed as weaker.

Shifting gears, Cintas Corporation (NasdaqGS:CTAS) has an FCF quality score of 3.313673. The free quality score helps estimate the stability of free cash flow. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. When reviewing this score, it is generally thought that the lower the ratio, the better. Presently, Cintas Corporation has an FCF score of 2.186122. The FCF score is determined by merging free cash flow stability with free cash flow growth. In general, a higher FCF score value would represent high free cash flow growth. Monitoring FCF information may help provide some excellent insight on the financial health of a specific company.

Investors might want to take a look at shares of Cintas Corporation (NasdaqGS:CTAS) from a different angle. Let’s take a peek at the current Q.i. (Liquidity) Value. Cintas Corporation has a Q.i. value of 40. This value ranks stocks using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help identify companies that are undervalued. A larger value would indicate low turnover and a higher chance of shares being priced incorrectly. A lower value may show larger traded value meaning more sell-side analysts may track the company leading to a lesser chance that shares are priced improperly.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Cintas Corporation (NasdaqGS:CTAS) over the past 52 weeks is 0.776. The 52-week range can be found in the stock’s quote summary.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Cintas Corporation (NasdaqGS:CTAS) is 6. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Cintas Corporation is 5954. The lower the ERP5 rank, the more undervalued a company is thought to be.

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Business

Consensus EPS Watch for Compass Diversified Holdings (NYSE:CODI)

EPS is commonly considered to be one of the most important factors when evaluating the price of a share. Taking a look at the current quarter consensus earnings per share estimate provided by Zacks Research, we can see that the number for Compass Diversified Holdings (NYSE:CODI) is .26. This estimate is using projections provided by 4 Wall Street analysts. Last quarter, the company notched a quarterly EPS of .36. Trading around earnings reports can be difficult. Gauging which direction a stock will shift after earnings can sometimes be a toss up. Sometimes, companies may report great numbers with a solid beat, and the stock will head lower. Other times, a stock will miss projections, but the price will rise. Traders who are able to take on the risk may be able to withstand the high volatility that could follow after the report is released.

Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines. 

Sell-side Street analysts often offer stock ratings for companies that they cover. Based on analysts polled by Zacks Research, the present average broker rating on shares of Compass Diversified Holdings (NYSE:CODI) is presently -22.68. This average rating includes analysts who have given Sell, Buy and Hold ratings on the equity. This rating uses a numerical recommendation scale from 1 to 5. A score of 1 would represent a Buy recommendation, and a score of 5 would indicate a Sell recommendation. Out of all the analysts providing recommendations, 4 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Taking a look at some target price information, we note that shares of Compass Diversified Holdings (NYSE:CODI) presently have an average target price of $23. This is the consensus target price using estimates offered by analysts polled by Zacks Research. Sell-side analysts can calculate price target projections using various methods. Many investors will track stock target prices, especially when analysts make changes to the target. A thorough research report will generally give detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the data to help with their own stock research.

Let’s shift the focus and look at some historical stock price action on shares of Compass Diversified Holdings (NYSE:CODI). After a recent market scan, we have seen that the stock has been trading near the $16.34 level. Investors may also be tracking the current stock price in relation to its 52-week high and low. The 52-week high is currently sitting at $26.2, and the 52-week low is $15.55. When the stock starts moving towards the 52-week high or 52-week low, investors may pay added attention to see if there will be a breakthrough that level. Over the last 12 weeks, the stock has moved -29.57%. Since the beginning of the calendar year, we can see that shares have changed -34.48%. Over the past 4 weeks, shares have moved .64713%. Over the previous 5 sessions, the stock has moved 32%.

Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past. 

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Business

What is the Sell-side Recommending for MetLife, Inc. (NYSE:MET)

Sell-side analysts are offering a consensus “Buy” rating on shares of MetLife, Inc. (NYSE:MET).  Using the following ratings scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell and 5.0 Strong Sell, analysts have an average recommendation of 2.10 on the shares.  Based on a recent trade, the shares are hovering around $25.80 which, according to analysts, yield significant upside potential to the $51.75 consensus target price.

Following all the day to day information regarding publically traded companies can be challenging. There is rarely any shortage of data that investors can examine when attempting to research specific stocks. One of the greatest challenges for the investor is determining which data to focus on and which data to set aside. Investors will often need to stay aware of happenings in the overall economic environment, and pay attention to global factors that may have a widespread impact on markets. Being aware of the macroeconomic picture can greatly help the investor when making important portfolio decisions. 

Dealing with the ups and down of the stock market is something that most investors will encounter at some point. Everyone wants to feel that thrill of seeing that big winner soar, and nobody wants to see that loser keep sinking. Figuring out how to best approach the stock market can take up a lot of time and energy. There are many strategies that investors can use when purchasing stocks for the portfolio. Some of these strategies may be riskier than others. Determining a comfortable level of risk appetite may be highly important for the individual investor. It is important to remember that there are no guarantees in the stock market. New investors may have to learn that there is rarely any substitute for hard work and tireless research. Many investors jump in head first and find this out the hard way. Realizing that there is no guaranteed strategy for stock picking might help the investor stay focused and grounded while building up the portfolio.

MetLife, Inc. (NYSE:MET)’s shares may have a significant upside to the consensus target of 51.75, but how has it been performing relative to the market?  The stock’s price is 25.80 and their relative strength index (RSI) stands at 30.25.  RSI is a technical oscillator that shows price strength by comparing upward and downward movements.  It indicates oversold and overbought price levels for a stock.  

MetLife, Inc. (NYSE:MET) shares are moving 9.65% trading at $25.80 today.

Investors are typically searching far and wide for any little advantage they can get in the stock market. Short-term traders using technical analysis may be looking to score quick profits by capitalizing on the fluctuations of stock prices. There are many different technical indicators that traders can choose to study. Some traders may find an indicator that works great by itself. Others may use a combination of multiple indicators to help spot trends and patterns. Many active traders will keep a close eye on a particular stock when it is nearing a new high or new low that hasn’t been touched in some time. Studying historical stock price action may lend some insight into whether or not a stock is likely to break out past the new high, or plummet further to a much lower low. Staying on top of the action may be crucial when frequently entering and exiting trades.  

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Business

Following the Projections for Comcast Corporation (NASDAQ:CMCSA)

EPS is commonly considered to be one of the most important factors when evaluating the price of a share. Taking a look at the current quarter consensus earnings per share estimate provided by Zacks Research, we can see that the number for Comcast Corporation (NASDAQ:CMCSA) is .74. This estimate is using projections provided by 11 Wall Street analysts. Last quarter, the company notched a quarterly EPS of .79. Trading around earnings reports can be difficult. Gauging which direction a stock will shift after earnings can sometimes be a toss up. Sometimes, companies may report great numbers with a solid beat, and the stock will head lower. Other times, a stock will miss projections, but the price will rise. Traders who are able to take on the risk may be able to withstand the high volatility that could follow after the report is released.

Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines. 

Sell-side Street analysts often offer stock ratings for companies that they cover. Based on analysts polled by Zacks Research, the present average broker rating on shares of Comcast Corporation (NASDAQ:CMCSA) is presently -.92. This average rating includes analysts who have given Sell, Buy and Hold ratings on the equity. This rating uses a numerical recommendation scale from 1 to 5. A score of 1 would represent a Buy recommendation, and a score of 5 would indicate a Sell recommendation. Out of all the analysts providing recommendations, 21 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.

Taking a look at some target price information, we note that shares of Comcast Corporation (NASDAQ:CMCSA) presently have an average target price of $51.39. This is the consensus target price using estimates offered by analysts polled by Zacks Research. Sell-side analysts can calculate price target projections using various methods. Many investors will track stock target prices, especially when analysts make changes to the target. A thorough research report will generally give detailed reasoning for a certain target projection. Some investors may watch sell-side targets very closely and use the data to help with their own stock research.

Let’s shift the focus and look at some historical stock price action on shares of Comcast Corporation (NASDAQ:CMCSA). After a recent market scan, we have seen that the stock has been trading near the $37.88 level. Investors may also be tracking the current stock price in relation to its 52-week high and low. The 52-week high is currently sitting at $47.5, and the 52-week low is $37.88. When the stock starts moving towards the 52-week high or 52-week low, investors may pay added attention to see if there will be a breakthrough that level. Over the last 12 weeks, the stock has moved -15.18%. Since the beginning of the calendar year, we can see that shares have changed -12.98%. Over the past 4 weeks, shares have moved .46546%. Over the previous 5 sessions, the stock has moved 158%.

Investors often have to calculate risk/reward scenarios when navigating the equity market. Keeping track of alternatives and gauging the likelihood of certain outcomes can help with designing a legitimate strategy. When all the research and planning has been completed, there may come a time when the investor has to make a decision and get ready to take some action. There will obviously be some trades that work out great and others that don’t. Accepting the fact that this is part of the process can help keep the investor focused on the next trade instead of lamenting the past. 

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Business

International Paper Company (NYSE:IP)’s Gross Margin Score Hits Key 22 Level

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at stocks that have a high earnings yield as well as a high return on invested capital (ROIC). The MF Rank of International Paper Company (NYSE:IP) is 5791. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Checking in on some price index levels, the six month is currently at 0.79983. The six month price index is measured by dividing the current share price by the share price six months ago. A ratio above one indicates an increase in the stock price over the six month time frame. A ratio under one signals that the price has lowered over that same time frame.

Watching some historical volatility numbers on shares of International Paper Company (NYSE:IP), we can see that the 12 month volatility is presently 29.6355. The 6 month volatility is 30.2978, and the 3 month is spotted at 38.8628. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Valuation Scores

At the time of writing, International Paper Company (NYSE:IP) has a Piotroski F-Score of 9. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

International Paper Company has an M-score Beneish of -2.33934. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of International Paper Company (NYSE:IP). The name currently has a score of 22. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Shifting gears, we can see that International Paper Company (NYSE:IP) has a Q.i. Value of 18. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

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Business

Ross Stores Inc. (ROST) MACD Reading at Sell With $61.83 Support

The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Ross Stores Inc. (ROST) has a 14-day RSI of 22.25, the 7-day is at 20.58, and the 3-day is resting at 23.49.

Ross Stores Inc. (ROST) currently has a 14-day Commodity Channel Index (CCI) of -95.14. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Shares of Ross Stores Inc. (ROST) have a 200-day moving average of 108.41. The 50-day is 108.36, and the 7-day is sitting at 69.77. Using a bigger time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels.

The Average Directional Index or ADX is technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Ross Stores Inc. (ROST) is 48.44. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The Williams Percent Range or Williams %R is another technical indicator that may be useful for traders and investors.

The Williams %R is designed to provide a general sense of when the equity might have reached an extreme and be primed for a reversal. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place. The 14 day Williams %R for Ross Stores Inc. (ROST) is noted at -87.21. Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20.

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Sell-Side Offering Their Recommendations on Trip.com Group Limited (:TCOM)

Wall Street brokerage firm analysts have placed a “Buy” rating on shares of Trip.com Group Limited (:TCOM).  Using the following ratings scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell and 5.0 Strong Sell, analysts have an average recommendation of 2.40 on the shares.  Based on a recent trade, the shares are hovering around $23.65 which, according to analysts, yield significant upside potential to the $237.74 consensus target price.

As the next earnings season comes into focus, investors will be keeping watch on the performance of companies that they own. A company that continually exceeds earnings projections is most likely on the right track. On the other end of the spectrum, a company that frequently misses earnings projections might provide some insight to the fact that something isn’t right. Although it is important to keep track of earnings estimates and results, it shouldn’t be the only thing that the investor is looking at regarding the stock. Just because a company misses or beats expectations for one quarter may not mean anything super special. Tracking performance over a longer period of time can help paint the bigger picture of what is going on with the company. Sharp investors often have the ability to look deeper into the numbers to see the actual causes of an earnings hit or miss. Of course estimates are just that, estimates, and some analysts may be more accurate than others.

Wall Street firms hire hundreds of analysts who provide recommendations on stocks.  Typically, these analysts look at a company’s fundamentals, building financial models from this information in order to project future trends, specifically future earnings. 

These projections are then used as a basis for providing “buy” or “sell” recommendations.  Many investors consider these recommendations very seriously, and often times whenever an analyst changes their outlook on a stock, the price change almost immediately.

Analyst recommendations should be approached with caution for many reasons.  Many times a conflict of interest arises due to the relationship between company that they work for and the company whose stock they are paid to track. 

Often, analysts are responsible for creating reports on companies that are currently or could potentially be a client of their employer.  Analysts don’t want to offend any companies that could possibly be a potential client down the road, so they are inclined to put a positive spin on the stock. 

Beyond issuing buy, sell, or hold recommendations, analysts also create earnings estimates.  These are earnings per share (EPS) numbers that analysts believe a particular company will report on its next statement.  These estimates have been growing in importance on Wall Street over the years, because the companies that “beat” their estimates usually see their stock prices grow while those who don’t usually watch them shrink.

RSI 

Trip.com Group Limited (:TCOM)’s shares may have a significant upside to the consensus target of 237.74, but how has it been performing relative to the market?  The stock’s price is 23.65 and their relative strength index (RSI) stands at 37.59.  RSI is a technical oscillator that shows price strength by comparing upward and downward movements.  It indicates oversold and overbought price levels for a stock.  

Trip.com Group Limited (:TCOM) shares are moving 7.11% trading at $23.65 today.

Investors are constantly looking to find winning stocks that have been largely overlooked. With markets still riding high, this may not be the easiest thing in the world right now. Finding those perfect stocks before they become household names may take a lot of research and homework. Many investors will apply various strategies for picking stocks. If there was one that worked for everybody, it would make things super easy. Of course, this is not the case. Obviously, there are no guarantees in the stock market. Some investors may only focus on the fundamentals of a company and completely ignore the technicals. Others may choose to only watch technicals and never take a look at the underlying company information. Combining both areas of research may help give a better feel of what is going on with the stock in the long term and the short term. Individual investors who manage their own portfolios may need to put in a lot more time than those who don’t. Successful investors often have an uncanny way of filtering out the noise and keeping their focus on the right information.