| 2020 | 2021 | 2022 | 2023 (projected) | Interest Expense | 135.9 M | 150.7 M | 162.9 M | 141.05 M | Gross Profit | 385.7 M | 541.8 M | 611.3 M | 605.17 M |
Is it time to hedge Yellow Corp (USA Stocks:YELL) high volatility
 | By Nico Santiago | Macroaxis Story |
In the midst of a turbulent market, Yellow Corp (NASDAQ: YELL) has been a beacon of stability, outperforming many of its peers in the Road & Rail industry. Despite the broader market downturn, the trucking company has showcased strong resilience, with a daily balance of power at 0.3895 and a rate of daily change at 1.2. The stock's typical price for the day stands at $3.82, slightly above its median price of $3.76. Analysts have a hold consensus on the stock, with two holds out of two estimates. The highest estimated target price stands at $7, while the lowest is at $2.5, giving an average target price estimated value of $4.75. However, the stock's real value is currently estimated at $3.75, with a possible upside price of 31.89 and a possible downside price of 0.0394. Despite the volatility, Yellow Corp's market value remains strong at $3.94, demonstrating its potential for growth amidst the current market conditions. Yellow Corp is currently generating an expected daily return of 3.8351% and assumes a risk of 27.9226% (based on volatility of return distribution) over a 60-day horizon. Given the heightened interest of many ambitious investors in the road & rail sector, it's pertinent to assess Yellow Corp in relation to its current volatility. We will determine whether the recent price volatility of Yellow Corp suggests a potential rebound in September.
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Reviewed by Gabriel Shpitalnik
Yellow Corp's stock has demonstrated an impressive resilience amidst the market downturn, outperforming many of its peers in the trucking industry. The company's Jensen Alpha, a measure of risk-adjusted performance, stands at a robust 2.9, indicating that the stock has provided a higher return than what would be predicted by its level of volatility. This resilience is further reflected in Yellow Corp's Mean Deviation of 13.42 and Standard Deviation of 27.19, suggesting a strong ability to withstand market fluctuations. Additionally, the company's Total Risk Alpha of 1.49 and Downside Variance of 177.94 indicate a relatively low risk of significant losses, making it a potentially attractive investment for those seeking to minimize volatility in their portfolio.
Additional examination
Yellow Corp currently has approximately $266.8 million in cash, with $121.3 million of positive cash flow from operations. This results in a cash-per-share (CPS) ratio of 5.17, which could potentially make it an attractive takeover target, assuming it continues to generate positive cash flow. Yellow Corp holds a performance score of 10 on a scale from zero to one hundred. The company maintains a market beta of 9.0312, indicating a somewhat significant risk relative to the market. As the market rises, the company is expected to outperform it. However, if the market yields negative returns, Yellow Corp will likely underperform. While it's important to consider Yellow Corp's historical price patterns, it's also crucial to be realistic about what can be done with the current price history of the equity. Our approach to predicting the future potential of any stock involves examining not only its past charts, but also the business as a whole, including all available fundamental and technical indicators. To determine if Yellow Corp's expected return of 3.84 will be sustainable in the future, we have identified twenty-seven different technical indicators that can assist in verifying if the expected returns are maintainable. Utilize Yellow Corp's value at risk, as well as the relationship between the skewness and the day median price, to analyze future returns on Yellow Corp.Volatility is a rate at which the price of Yellow Corp 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 Yellow Corp may increase or decrease. In other words, similar to Yellow's beta indicator, it measures the risk of Yellow Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Yellow Corp 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.Watch out for price decline
Please consider monitoring Yellow Corp on a daily basis if you are holding a position in it. Yellow Corp is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Yellow Corp stock to be traded above the $1 level to remain listed. If Yellow Corp 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 Yellow Corp's Liquidity
Yellow Corp financial leverage refers to using borrowed capital as a funding source to finance Yellow Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Yellow Corp 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 Yellow Corp'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 Yellow Corp'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 Yellow Corp's total debt and its cash.
An Additional Perspective On Yellow Corp
The latest price rise of Yellow Corp may raise some interest from institutional investors.as it is trading at a share price of 3.94 on 90,324,512 in trading volume. The company management teams may have good odds in positioning the company resources to exploit market volatility in September. The stock standard deviation of daily returns for 90 days investing horizon is currently 27.92. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Yellow Corp partners.
Despite the broader market downturn, Yellow Corp has been a standout performer, showcasing remarkable resilience. With a total asset base of $2.28 billion and net income of $21.8 million, the company has demonstrated solid financial stability. This is further underscored by the company's healthy cash flow from operations, which stands at $121.3 million.Yellow Corp's stock has a beta of 2.62, indicating a higher level of volatility compared to the market. However, the company's semi deviation and downside deviation are 11.12 and 13.34 respectively, suggesting that the stock's price has a tendency to fall less drastically than the overall market. Institutional investors seem to have confidence in the company, with shares owned by institutions accounting for 36.40% of the total. The company also boasts a substantial gross profit of $600.8 million, reflecting its strong operational efficiency. Despite its market volatility, Yellow Corp's current ratio of 1.29X shows that it has enough resources to cover its short-term obligations. Additionally, the company's total debt of $1.69 billion is manageable considering its total assets and net assets. Yellow Corp's performance and resilience amidst market downturns make it a compelling consideration for investors looking for robust stocks. .
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