Gaotu Techedu Drc Stock Buy Hold or Sell Recommendation
| GOTU Stock | USD 3.68 0.22 6.36% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Gaotu Techedu DRC is 'Strong Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Gaotu Techedu DRC given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Gaotu Techedu DRC, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Gaotu Techedu Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Gaotu and provide practical buy, sell, or hold advice based on investors' constraints. Gaotu Techedu DRC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
Gaotu |
Execute Gaotu Techedu Buy or Sell Advice
The Gaotu recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Gaotu Techedu DRC. Macroaxis does not own or have any residual interests in Gaotu Techedu DRC or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Gaotu Techedu's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Gaotu Techedu Trading Alerts and Improvement Suggestions
| Gaotu Techedu DRC is way too risky over 90 days horizon | |
| Gaotu Techedu DRC appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 2.96 B. Net Loss for the year was (7.3 M) with profit before overhead, payroll, taxes, and interest of 1.8 B. | |
| Latest headline from gurufocus.com: Gaotu Techedu Projects a Meaningful Reduction in Non-GAAP Operating Loss for 2025 |
Gaotu Techedu Returns Distribution Density
The distribution of Gaotu Techedu's historical returns is an attempt to chart the uncertainty of Gaotu Techedu's future price movements. The chart of the probability distribution of Gaotu Techedu daily returns describes the distribution of returns around its average expected value. We use Gaotu Techedu DRC price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Gaotu Techedu returns is essential to provide solid investment advice for Gaotu Techedu.
| Mean Return | 0.78 | Value At Risk | -5.17 | Potential Upside | 7.62 | Standard Deviation | 5.69 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Gaotu Techedu historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Gaotu Stock Institutional Investors
The Gaotu Techedu's institutional investors refer to entities that pool money to purchase Gaotu Techedu's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Carmignac Gestion | 2024-12-31 | 502.4 K | Harvest Fund Management Co., Ltd | 2024-12-31 | 473.9 K | Marshall Wace Asset Management Ltd | 2024-12-31 | 356.5 K | State Street Corp | 2024-12-31 | 352 K | Gsa Capital Partners Llp | 2024-12-31 | 338.3 K | Millennium Management Llc | 2024-12-31 | 284.4 K | Cubist Systematic Strategies, Llc | 2024-12-31 | 223.2 K | Barclays Plc | 2024-12-31 | 216 K | Headlands Technologies Llc | 2024-09-30 | 203.7 K | Vanguard Group Inc | 2024-12-31 | 5.6 M | Ubs Group Ag | 2024-12-31 | 4.5 M |
Gaotu Techedu Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Investments | (5.2B) | 4.8B | (158.4M) | (424.0M) | (487.6M) | (512.0M) | |
| Change In Cash | 281.3M | 541.9M | (528.9M) | (150.0M) | (135.0M) | (128.2M) | |
| Free Cash Flow | 319.2M | (4.5B) | 243.9M | 312.9M | 281.6M | 295.7M | |
| Depreciation | 57.2M | 112.6M | 484.8M | 54.2M | 62.4M | 114.7M | |
| Other Non Cash Items | (49.7M) | 181.6M | (345.4M) | (9.1M) | (8.2M) | (8.6M) | |
| Capital Expenditures | 284.1M | 272.3M | 129.9M | 40.8M | 46.9M | 44.6M | |
| Net Income | (1.4B) | (3.1B) | 90.3M | (7.3M) | (6.6M) | (6.9M) | |
| End Period Cash Flow | 355.2M | 897.1M | 5.6B | 670.0M | 770.4M | 1.2B | |
| Change To Netincome | 5.1M | 47.3M | 171.1M | 502.5M | 577.9M | 606.7M |
Gaotu Techedu Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Gaotu Techedu or Diversified Consumer Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Gaotu Techedu's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Gaotu stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.83 | |
β | Beta against Dow Jones | 0.61 | |
σ | Overall volatility | 5.77 | |
Ir | Information ratio | 0.15 |
Gaotu Techedu Volatility Alert
Gaotu Techedu DRC shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gaotu Techedu's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gaotu Techedu's 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 financial instruments as prices fall.Gaotu Techedu Fundamentals Vs Peers
Comparing Gaotu Techedu's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Gaotu Techedu's direct or indirect competition across all of the common fundamentals between Gaotu Techedu and the related equities. This way, we can detect undervalued stocks with similar characteristics as Gaotu Techedu or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Gaotu Techedu's fundamental indicators could also be used in its relative valuation, which is a method of valuing Gaotu Techedu by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Gaotu Techedu to competition |
| Fundamentals | Gaotu Techedu | Peer Average |
| Return On Equity | -0.21 | -0.31 |
| Return On Asset | -0.0954 | -0.14 |
| Profit Margin | (0.18) % | (1.27) % |
| Operating Margin | (0.46) % | (5.51) % |
| Current Valuation | 505.73 M | 16.62 B |
| Shares Outstanding | 148.78 M | 571.82 M |
| Shares Owned By Insiders | 7.57 % | 10.09 % |
| Shares Owned By Institutions | 28.52 % | 39.21 % |
| Number Of Shares Shorted | 8.63 M | 4.71 M |
| Price To Book | 3.29 X | 9.51 X |
| Price To Sales | 0.20 X | 11.42 X |
| Revenue | 2.96 B | 9.43 B |
| Gross Profit | 1.8 B | 27.38 B |
| EBITDA | (94.76 M) | 3.9 B |
| Net Income | (7.3 M) | 570.98 M |
| Cash And Equivalents | 3.34 B | 2.7 B |
| Cash Per Share | 12.90 X | 5.01 X |
| Total Debt | 188.15 M | 5.32 B |
| Debt To Equity | 0.03 % | 48.70 % |
| Current Ratio | 3.13 X | 2.16 X |
| Book Value Per Share | 10.33 X | 1.93 K |
| Cash Flow From Operations | 353.7 M | 971.22 M |
| Short Ratio | 5.04 X | 4.00 X |
| Earnings Per Share | (0.33) X | 3.12 X |
| Price To Earnings To Growth | 9.47 X | 4.89 X |
| Target Price | 34.7 | |
| Beta | 0.019 | -0.15 |
| Market Capitalization | 750.34 M | 19.03 B |
| Total Asset | 5.41 B | 29.47 B |
| Retained Earnings | (4.81 B) | 9.33 B |
| Working Capital | 1.61 B | 1.48 B |
| Net Asset | 5.41 B |
Gaotu Techedu Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Gaotu . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Gaotu Techedu Buy or Sell Advice
When is the right time to buy or sell Gaotu Techedu DRC? Buying financial instruments such as Gaotu Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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ISP
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Additional Tools for Gaotu Stock Analysis
When running Gaotu Techedu's price analysis, check to measure Gaotu Techedu's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gaotu Techedu is operating at the current time. Most of Gaotu Techedu's value examination focuses on studying past and present price action to predict the probability of Gaotu Techedu's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gaotu Techedu's price. Additionally, you may evaluate how the addition of Gaotu Techedu to your portfolios can decrease your overall portfolio volatility.