Technical analysis of the following three stocks:
- Cenovus Energy Inc. a Canada based Company, belongs to a Basic Materials
- Ascena Retail Group, Inc. a USA based Company, belongs to a Services Sector.
- Hess Corporation a USA based Company, belongs to a Basic Materials
On Friday, Cenovus Energy Inc. (NYSE:CVE) reached at $11.26 price level during last trade its distance from 20 days simple moving average is 11.29%, and its distance from 50 days simple moving average is 16.53% while it has a distance of 14.20% from the 200 days simple moving average. The company’s distance from 52-week high price is -33.06% and current price is above +66.57% from 52-week low price. Past 5 years growth of CVE observed at -, and for the next five years the analysts that follow this company are expecting its growth at -18.50%. The average true range (ATR) is a measure of volatility introduced by Welles Wilder in his book, “New Concepts in Technical Trading Systems.” The true range indicator is the greatest of the following: current high less the current low, the absolute value of the current high less the previous close and the absolute value of the current low less the previous close. The average true range is a moving average, generally 14 days, of the true ranges. The company has Relative Strength Index (RSI 14) of 74.86 along with Average True Range (ATR 14) of 0.32. Its weekly and monthly volatility is 3.26%, 2.97% respectively.
Ascena Retail Group, Inc. (NASDAQ:ASNA) closed at $2.01 by scoring 4.69%. The price/earnings to growth ratio (PEG ratio) is a stock’s price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock’s value while taking the company’s earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. Currently has a PEG ratio of – where as its P/E ratio is -. The overall volume in the last trading session was 1,833,991 shares.
ASNA’s price to sales ratio for trailing twelve months is 0.06 and price to book ratio for most recent quarter is 0.48, whereas price to cash per share for the most recent quarter is 1.15. The Company’s price to free cash flow for trailing twelve months is 1.13. Its quick ratio for most recent quarter is 0.50. Analysts mean recommendation for the stock is 3.30. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Currently, 11.33% shares of Hess Corporation (NYSE:HES) are owned by insiders with -0.06% six-month change in the insider ownership. The insider filler data counts the number of monthly positions over 3 month and 12 month time spans. The stock closed at $47.11 by scoring -0.88%. Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 1.80 as current ratio and on the opponent side the debt to equity ratio was 0.51 and long-term debt to equity ratio also remained 0.50. The stock showed monthly performance of 6.58%. Likewise, the performance for the quarter was recorded as 16.21% and for the year was -5.10%.
Growth in earnings per share is everything. The expected future growth in earnings per share (“EPS”) is an incredibly important factor .in identifying an under-valued stock. The impact of earnings growth is exponential. Over the long run, the price of a stock will generally go up in lock step with its earnings (assuming the P/E ratio is constant). Therefore stocks with higher earnings growth should offer the highest capital gains. And doubling the growth more than doubles the capital gain, due to the compounding effect.
If we consider EPS growth of the company, then the company indicated the following observations:
The company showed -20.19 diluted EPS growth for trailing twelve months. However, YTD EPS growth remained -24.37%.
Hess Corporation (NYSE:HES) exchanged hands 2,154,640 shares versus average trading capacity of 4.08M shares, while its relative trading volume is 0.53. HES’s total market worth is $15.11B. The Company has a Return on Assets of -22.80%. The company currently has a Return on Equity of -45.60% and Return on Investment of -27.00%.
Beta is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets has a beta of exactly 1. A beta below 1 can indicate either an investment with lower volatility than the market, or a volatile investment whose price movements are not highly correlated with the market. An example of the first is a treasury bill: the price does not go up or down a lot, so it has a low beta. An example of the second is gold. The price of gold does go up and down a lot, but not in the same direction or at the same time as the market.
A beta greater than one generally means that the asset both is volatile and tends to move up and down with the market. An example is a stock in a big technology company. Negative betas are possible for investments that tend to go down when the market goes up, and vice versa. There are few fundamental investments with comprising and noteworthy negative betas, but some derivatives like put options can have large negative betas.
Why Traders should have a look on beta and why it is important
Beta is important because it measures the risk of an investment that cannot be reduced by diversification. It does not measure the risk of an investment held on a stand-alone basis, but the amount of risk the investment adds to an already-diversified portfolio. In the capital asset pricing model, beta risk is the only kind of risk for which investors should receive an predictable return higher than the risk-free rate of interest.
Why higher-beta is riskier than lower- beta
Higher-beta stocks tend to be more volatile and therefore riskier, but provide the potential for higher returns. Lower-beta stocks pose less risk but generally offer lower returns. Some have challenged this idea, claiming that the data show little relation between beta and potential reward, or even that lower-beta stocks are both less risky and more profitable (contradicting CAPM). In the same way a stock’s beta shows its relation to market shifts, it is also an indicator for required returns on investment (ROI).
Now have a glance on Beta of these three stocks
Beta values for the above stocks are 0.65, 1.87, 1.76.
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