Are Wrap (USA Stocks:WRAP) retail investors starting to hold back?
 | By Vlad Skutelnik | Macroaxis Story |
Wrap Technologies has a beta of 2.1785. This suggests that the company is likely to outperform the market when it is on an upward trend. Conversely, if the market experiences negative returns, Wrap Technologies is expected to underperform. The beta indicator is a useful tool for investors as it provides insight into whether Wrap Technologies' performance aligns with the broader market, and it also measures the stock's volatility, or risk, relative to the market (i.e., selected benchmark). In simpler terms, if Wrap's performance doesn't deviate significantly from the market, it doesn't contribute much risk to the portfolio, but it also doesn't significantly enhance the expected returns.
Main Points
Wrap Technologies (NASDAQ: WRAP), a key player in the Scientific & Technical Instruments industry, presents a compelling investment opportunity this December. The company's Total Risk Alpha of 1.66 suggests a potential for higher returns, while a Sortino Ratio of 0.2463 indicates a favorable risk-adjusted performance. Despite a Maximum Drawdown of 37.11, the stock has shown a significant Price Percent Change of 33.19, pointing towards a strong upward trend. Moreover, with a Beta of 1.832, Wrap Technologies' stock price is expected to move more than the market, providing an opportunity for greater profits. However, investors should also consider the Downside Variance of 18.46, which could indicate potential losses.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 Ellen Johnson
In the world of investing, fortune often favors the bold. Wrap Technologies (NASDAQ: WRAP), a key player in the Electronic Equipment & Instruments sector, presents a compelling case for robust growth in December. With a market valuation of 3.01 and a hype value of 3.03, the company's stock is poised for a significant uptick. Despite the analyst overall consensus being a 'Hold', the Wall Street target price stands at 2.5, indicating a potential upside. The company's shares short have increased from 2.9M to 3.1M over the last month, suggesting a growing interest among investors. The stock's 52-week high and low stand at 3.2 and 0.95 respectively, with the 200-day MA and 50-day MA at 1.6494 and 1.6226, indicating a positive trend. Given these factors, Wrap Technologies presents a lucrative investment opportunity for those willing to take calculated risks. Currently, Wrap Technologies' Revenue to Assets ratio remains relatively stable compared to the previous year. As of November 4, 2023, the Quick Ratio is projected to increase to 10.62, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to decrease to -$18.1 million. The purpose of this article is to provide retail investors with our perspective on the future value of Wrap Technologies. We will explore the reasons why this could be a game-changer for the company's retail investors.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Wrap Technologies. Your research has to be compared to or analyzed against Wrap Technologies' peers to derive any actionable benefits. When done correctly, Wrap Technologies' 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 Wrap Technologies.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Wrap Technologies. 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 Wrap Technologies
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Wrap Technologies' 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.
How important is Wrap Technologies's Liquidity
Wrap Technologies financial leverage refers to using borrowed capital as a funding source to finance Wrap Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wrap Technologies 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 Wrap Technologies' 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 Wrap Technologies' 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 Wrap Technologies's total debt and its cash.
Wrap Technologies Gross Profit
Wrap Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Wrap Technologies 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 Wrap Technologies Gross Profit growth over the last 10 years. Please check Wrap Technologies' gross profit and other fundamental indicators for more details.
Breaking down Wrap Technologies Indicators
Wrap Technologies is displaying above-average volatility over the selected time horizon. Investors should scrutinize Wrap Technologies independently to ensure intended market timing strategies are aligned with expectations about Wrap Technologies volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wrap Technologies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wrap Technologies' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
As Warren Buffet wisely said, be fearful when others are greedy and be greedy when others are fearful.This sentiment rings true for Wrap Technologies (NASDAQ: WRAP), a company that has shown robust growth potential. With a Wall Street target price of $2.5, the stock is currently trading below its 50-day moving average of $1.62 and 200-day moving average of $1.65, indicating a lucrative investment opportunity. The company's strong financial position is evident from its cash and equivalents of $28.5 million and working capital of $23.7 million. Furthermore, the company has a low debt-to-equity ratio of 0.01%, indicating minimal financial risk. However, potential investors should be mindful of the company's high short ratio of 32.16X and the probability of bankruptcy at 49.17%. Despite these risks, the potential upside of 15.45 and a beta of 1.83 suggest that Wrap Technologies could offer substantial returns for risk-tolerant investors. .
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