Four analysts have given CareCloud stock a consensus rating of 'Strong Buy'. This consensus is typically based on technical analysis, which uses price momentum, patterns, and trends derived from historical prices. The goal is to identify signals based on market sentiment and investors' perception of CareCloud's future value. Let's delve into some aspects of CareCloud's technical analysis.
Main Takeaways
From a technical standpoint, CareCloud (NASDAQ: CCLD) has been displaying certain promising signals that might suggest a bullish reversal in the offing. The stock's Mean Deviation of
5.43 indicates a significant price volatility, offering potential opportunities for investors. Moreover, CareCloud's 200 Day Moving Average (MA) stands at
1.68, higher than the current Last Price of 1.19. This could imply that the stock is currently undervalued and might witness an upward trend soon. However, it's crucial for investors to keep a watch on the Price Action Indicator which is slightly negative at -0.03, hinting at some downward pressure.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of CareCloud. In general, sophisticated investors focus on analyzing CareCloud stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build CareCloud's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
CareCloud's intrinsic value. In addition to deriving basic predictive indicators for CareCloud, many experienced traders also check how macroeconomic factors affect CareCloud price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of CareCloud's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as CareCloud. Your research has to be compared to or analyzed against CareCloud's peers to derive any actionable benefits. When done correctly, CareCloud's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in CareCloud.
How is CareCloud allocating its cash?
To perform a cash flow analysis of CareCloud, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CareCloud is receiving and how much cash it distributes out in a given period. The CareCloud cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Closer look at CareCloud Variance
CareCloud has current Variance of 62.37. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security.
A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2N |
| = | 62.37 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare CareCloud Variance to its closest peers:
| CCLD | 62.373325786945976 |
| MD | 6.14 |
| CI | 1.52 |
| GH | 13.28 |
| VEEV | 2.48 |
"Buy low, sell high" is a common adage in the world of finance, and it may be applicable to CareCloud (NASDAQ: CCLD) at this juncture. The Health Information Services company, with a market capitalization of $18.89M, is currently trading near its 52-week low of $0.68, well below its 200-day moving average of $1.6787. Despite a negative return on assets and equity, the firm's solid net income of $5.43M and positive cash flow from operations of $21.15M suggest underlying
financial health. Moreover, with a short percent of just 0.018 and a decrease in shares shorted from the prior month, it appears that short sellers are less bearish on the stock. Given these factors, CareCloud may indeed be poised for a bullish reversal. .
Our take on CareCloud small dip
The recent decrease in CareCloud's mean deviation to 5.43 suggests a slight reduction in the stock's volatility, indicating a potentially safer investment opportunity. This minor dip in the company's stock should not be alarming. Instead, it offers a chance for investors to consider adding CareCloud's shares to their portfolios. The company's strong business model and promising growth prospects make it an attractive option for both short-term traders and long-term investors. However, CareCloud, a potential penny stock, exhibits above-average volatility. Investors should carefully evaluate CareCloud to ensure their
market timing strategies align with expectations about its volatility. While CareCloud may be a good investment, many penny stocks are speculative and subject to artificial price hype. Investors are advised to be aware of signals such as email spams, unreported promotions, sudden news releases, and volume upswings. Also, check the backgrounds of current and past company officers before investing in high volatility instruments, penny stocks, or microcap equities.
While it's possible to profit from CareCloud if you time your entry and exit perfectly, remember that artificially hyped penny stocks usually cannot maintain their increased share price for long. The only way to increase shareholder value is through legitimate performance backed by solid fundamentals. Despite the recent 1 percent dip, CareCloud (CCLD) remains a compelling investment opportunity. Analysts are bullish on the stock, with
2 strong buys and
1 hold rating. The possible upside price of
$7.06 indicates significant growth potential, well above the current valuation market value of $1.19. Even the analyst's lowest estimated target price stands at $4.53, suggesting a substantial upside. The valuation real value of $2.12 further underlines the stock's potential. However, investors should be mindful of the possible downside price of $0.0119. Overall, the consensus is a strong buy, indicating that CareCloud could be a valuable addition to a diversified portfolio. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 CareCloud. Please refer to our
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