Technical analysis of the following three stocks:
- NIO Limited a China based Company, belongs to a Consumer Cyclical
- Transocean Ltd. a Switzerland based Company, belongs to a Energy Sector.
- Advanced Micro Devices, Inc. a USA based Company, belongs to a Technology
On Friday, NIO Limited (NYSE:NIO) reached at $41.98 price level during last trade its distance from 20 days simple moving average is -12.32%, and its distance from 50 days simple moving average is 14.36% while it has a distance of 164.90% from the 200 days simple moving average. The company’s distance from 52-week high price is -26.61% and current price is above +1889.57% from 52-week low price. Past 5 years growth of NIO observed at -0.15%, and for the next five years the analysts that follow this company are expecting its growth at N/A. 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 46.84 along with Average True Range (ATR 14) of 4.90. Its weekly and monthly volatility is 7.92%, 11.46% respectively. The euro slipped 0.1 percent to $1.1935. Gold futures fell 0.5 percent to $1,313.90 an ounce.
Transocean Ltd. (NYSE:RIG) closed at $2.52 by scoring -0.79%. 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 N/A where as its P/E ratio is N/A. The overall volume in the last trading session was 61,260,691 shares.
RIG’s price to sales ratio for trailing twelve months is 0.48 and price to book ratio for most recent quarter is 0.14, whereas price to cash per share for the most recent quarter is 1.13. The Company’s price to free cash flow for trailing twelve months is N/A. Its quick ratio for most recent quarter is 1.80. Analysts mean recommendation for the stock is 3.60. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
Further, 0.60% shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) are owned by insiders with -15.40% 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 $91.65 by scoring -0.01%. 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 2.30 as current ratio and on the opponent side the debt to equity ratio was 0.00 and long-term debt to equity ratio also remained 0.10. The stock showed monthly performance of 12.76%. Likewise, the performance for the quarter was recorded as 17.65% and for the year was 115.19%.
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 0.72 diluted EPS growth for trailing twelve months. However, YTD EPS growth remained 99.85%.
Advanced Micro Devices, Inc. (NASDAQ:AMD) exchanged hands 28,271,042 shares versus average trading capacity of 49.66M shares, while its relative trading volume is 0.57. AMD’s total market worth is $110.24B. The Company has a Return on Assets of 13.80%. The company currently has a Return on Equity of 27.00% and Return on Investment of 12.40%.
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 value” of these three stocks
NIO’s Beta value is N/A.
RIG’s Beta value is 3.73.
AMD’s Beta value is 2.32.
Beta is calculated using regression analysis. Beta represents the tendency of a security’s returns to respond to swings in the market. The formula for calculating beta is the covariance of the return of an asset with the return of the benchmark divided by the variance of the return of the benchmark over a certain period.
The Advantages of Beta
To followers of CAPM, beta is a useful measure. A stock’s price variability is important to consider when assessing risk. If you think about risk as the possibility of a stock losing its value, beta has appeal as a proxy for risk. Intuitively, it makes plenty of sense. Think of an early-stage technology stock with a price that bounces up and down more than the market. It’s hard not to think that stock will be riskier than, say, a safe-haven utility industry stock with a low beta.