Returns Breakdown
| Return On Capital Employed | (0.15) | |
| Return On Assets | (0.15) | |
| Return On Equity | (0.66) |
Estimating Mesa Air (USA Stocks:MESA) price for April 2024.
 | By Raphi Shpitalnik | Macroaxis Story |
In the world of investing, the sky is indeed the limit. Mesa Air Group (NASDAQ:MESA), a key player in the domestic passenger airlines industry, has recently seen its stock price gain over 1%. With a 52-week high of $3.16 and a current 50-day moving average of $0.94, the question on every investor's mind is whether there's further upside on the horizon. Despite a projected loss of $0.09 per share for the next fiscal year ending in September, and a strong sell consensus from analysts, the company's stock has shown resilience. The potential upside price of $9.85 suggests that there might be more room for growth. However, with a high beta of 2.98, investors should be prepared for volatility. Currently, Mesa Air Group's operating cycle is anticipated to marginally increase, based on recent years' reports. The Price Book Value Ratio for the current year is projected to rise to 0.19, while the Short Term Coverage Ratios are expected to increase to -0.16. This brief article explores Mesa Air as a potential investment option for your portfolios, offering insights into the company's future direction.
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
Mesa Air Group has a beta of 4.3995, suggesting it may outperform the market when it rises, but likely underperform during market downturns. Beta indicates how a company's stock moves relative to the market, providing insight into its volatility and risk compared to a chosen benchmark. In simple terms, if Mesa Air closely mirrors the market, it adds minimal risk to an investment portfolio but also doesn't significantly enhance expected returns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Mesa Air. Your research has to be compared to or analyzed against Mesa Air's peers to derive any actionable benefits. When done correctly, Mesa Air'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 Mesa Air Group.
Important Takeaways
Mesa Air Group (NASDAQ:MESA) stock, part of the Airlines industry, experienced a price increase of 1.15%, moving from an open price of $0.87 to a quote of $0.88. Despite a negative EPS estimate for the current year at a loss of $1.49, the firm's beta of 2.981 suggests a higher level of volatility and potential for substantial returns if market conditions favor the company. The recent price action indicator of 0.03 also hints at possible further upside, provided investors are willing to tolerate the company's high risk profile, as indicated by a total risk alpha of -1.43.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Mesa Air Group. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Mesa Air
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Mesa Air'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.
Watch out for price decline
Please consider monitoring Mesa Air on a daily basis if you are holding a position in it. Mesa Air is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Mesa Air stock to be traded above the $1 level to remain listed. If Mesa Air stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Mesa Air's Liquidity
Mesa Air financial leverage refers to using borrowed capital as a funding source to finance Mesa Air Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mesa Air 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 Mesa Air'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 Mesa Air'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 Mesa Air's total debt and its cash.
Mesa Air Gross Profit
Mesa Air Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Mesa Air 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 Mesa Air Gross Profit growth over the last 10 years. Please check Mesa Air's gross profit and other fundamental indicators for more details.
Another Deeper Perspective
Mesa Air Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Mesa Air Group independently to ensure intended market timing strategies are aligned with expectations about Mesa Air volatility. Mesa Air Group is a potential penny stock. Although Mesa Air may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Mesa Air Group. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Mesa instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
"Buy on the rumor, sell on the news," is a saying that rings true for Mesa Air Group (NASDAQ:MESA), which saw a gain of over 1% recently. Despite the increase, the airline's financials paint a less rosy picture. With a high probability of bankruptcy at 51.98% and a current ratio of 0.40X, indicating potential liquidity issues, caution is advised. The stock is trading significantly below its 52-week high of $3.16 and the Wall Street target price of $2. While the shares are predominantly owned by insiders and institutions, indicating some level of confidence, the company's negative return on equity and assets suggest it's struggling to generate profit. Therefore, while there may be some short-term trading opportunities, the long-term outlook appears uncertain. .
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 Raphi Shpitalnik do not own shares of Mesa Air Group. Please refer to our Terms of Use for any information regarding our disclosure principles.