Big 5 high volatility trend continues
 | By Ellen Johnson | Macroaxis Story |
In today's review, we will run through some ideas when considering Big 5 for a long position. We will recap why latest Big 5 price moves may cause a slide in August. Big 5 Tangible Asset Value is fairly stable at the moment as compared to the past year. Big 5 reported Tangible Asset Value of 445.06 Million in 2019. Working Capital is likely to grow to about 176.9 M in 2020, whereas Free Cash Flow is likely to drop (21.4 M) in 2020. Will the latest Big 5 risk factors impact the value of the stock? We estimate Big 5 as currently undervalued. The real value is approaching 2.44 per share. What is Big 5 Target Price Odds to finish over Current Price? Depending on a normal probability distribution, the odds of Big 5 to move above the current price in 30 days from now is about 22.96%. The Big 5 Sporting probability density function shows the probability of Big 5 Stock to fall within a particular range of prices over 30 days. Given the investment horizon of 30 days, the stock has beta coefficient of 1.9821 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Big 5 will likely underperform. Moreover, the company has an alpha of 1.4714, implying that it can generate a 1.47 percent excess return over DOW after adjusting for the inherited market risk (beta).
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Big 5 currently holds 416.08 M in liabilities with Debt to Equity (D/E) ratio of 2.38, implying the firm greatly relies on financing operations through barrowing. This firm has a current ratio of 1.82, which is within standard range for the sector. We provide buy or sell advice to complement the prevailing expert consensus on Big 5 Sporting. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. Volatility is a rate at which the price of Big 5 or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Big 5 may increase or decrease. In other words, similar to Big's beta indicator, it measures the risk of Big 5 and helps estimate the fluctuations that may happen in a short period of time. So if prices of Big 5 fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Big 5's Liquidity
Big 5 financial leverage refers to using borrowed capital as a funding source to finance Big 5 Sporting ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Big 5 financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Big 5's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Big 5's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Big 5's total debt and its cash.
Big 5 Gross Profit
Big 5 Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Big 5 previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Big 5 Gross Profit growth over the last 10 years. Please check Big 5's gross profit and other fundamental indicators for more details.
Big 5 Volatility Drivers
Big 5 unsystematic risk is unique to Big 5 Sporting and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Big 5 you can also buy OReilly Automotive. You can also mitigate this risk by investing in the consumer discretionary sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Big 5 important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Big 5 income statement and balance sheet. Here are more details about Big volatility.Click cells to compare fundamentals
What is driving Big 5 Investor Appetite?
Big 5 preserves 2.5 k of number of employees. The latest price spikes of Big 5 Sporting could raise concerns from investors as the firm closed today at a share price of 1.8 on very low momentum in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.47. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Big 5 partners. Big 5 Average Assets is increasing over the last 5 years. Big 5 Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Furthermore, Big 5 Revenue Per Employee is increasing over the last 5 years. The previous year's value of Big 5 Revenue Per Employee was 105,017.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Big 5 Sporting. Please refer to our Terms of Use for any information regarding our disclosure principles.