Comtech Telecommunications Corp (CMTL) has shown a significant level of risk with a Beta of 1.62, which is higher than the market average, indicating a more volatile investment. The company's Total Risk Alpha of 0.12 suggests that the stock may not be providing adequate return for
the level of risk taken. The company's EPS estimate for the current year is 0.55, which is a positive sign for potential investors. However, the stock's price has seen a decrease of
7.5% recently, which may be a cause for concern. The Accumulation Distribution of 52.8K indicates that the stock is being largely sold off, which could further drive down the price. Despite the high risk, the Sortino Ratio of 0.01 shows that the potential return may not be worth the possible downside. Investors should reconsider their investments in Comtech Telecommunications Corp given these factors.
Continued study
Comtech Telecommunications Corp. is undervalued at $10.16 per share, with modest projections for the future. Over 77.0% of Comtech Telecommunications Corp. shares are held by
institutions such as insurance companies. The institutional ownership of Comtech Telecommunications Corp. refers to the quantity of the company's equity that is owned by mutual funds, pension funds, insurance companies, investment firms, foundations, and other large entities that manage money on behalf of others. For the latest analysis of Comtech, including its current
ownership diagnostics, please check out our most recent report.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Comtech Telecommunicatio. 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 Comtech Telecommunicatio
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Comtech Telecommunicatio'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.
How important is Comtech Telecommunicatio's Liquidity
Comtech Telecommunicatio
financial leverage refers to using borrowed capital as a funding source to finance Comtech Telecommunications Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Comtech Telecommunicatio 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 Comtech Telecommunicatio'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 Comtech Telecommunicatio'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 Comtech Telecommunicatio's total debt and its cash.
Comtech Telecommunicatio Gross Profit
Comtech Telecommunicatio Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Comtech Telecommunicatio 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 Comtech Telecommunicatio Gross Profit growth over the last 10 years. Please check Comtech Telecommunicatio's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Comtech Telecommunicatio
The latest indifference towards the small price fluctuations of Comtech Telecommunicatio could raise concerns from institutional investors as the firm is trading at a share price of
8.14 on
443,608 in volume. The company management teams did not add any value to Comtech Telecommunicatio investors in
September. However, most investors can still diversify their portfolios with Comtech Telecommunicatio to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.43. The current volatility is consistent with the ongoing market swings in
September 2023 as well as with Comtech Telecommunicatio unsystematic, company-specific events.
Returns Breakdown
| Return on Investment | (5.67) |
| Return on Assets | (0.0406) |
| Return on Equity | (0.085) |
| Return Capital | (0.0914) |
| Return on Sales | (0.0609) |
Comtech Telecommunications Corp (NASDAQ: CMTL) has been under the radar of many investors given its industry position in Communication Equipment. With a market capitalization of
$245.38M, the company has a current ratio of 1.36X, indicating its ability to meet short-term obligations. Despite a 52-week high of $16.87, the stock is currently trading around a typical day price of $8.35, well below the Wall Street target price of $15.75.
Investors should note that the company's price to earnings to growth (PEG) ratio stands at 3.80X, which may suggest overvaluation. The company's EPS estimate for the current year is $0.55, with a promising increase to $0.8 for the next year. However, Comtech's high probability of bankruptcy at 38.40% and a negative return on asset of 0.0037 should be a concern for potential investors. The company's shares are largely held by institutions, at 76.88%, with insiders owning 4.53%. Despite a short percent of 0.0118, the number of shares shorted has decreased from 281.9K in the prior month to 264.7K. Comtech's total asset stands at
$974.3M, with current liabilities at $184.15M and total debt at $183.11M. Given these factors, it may be time for investors to reconsider their positions in Comtech Telecommunications Corp. The company's
financial health and market performance suggest a need for careful evaluation before making investment decisions. .
Comtech Telecommunicatio latest price slide can leaving institutional investors with little time to react
The recent increase in kurtosis above 3.04 for Comtech Telecommunications Corp suggests a potential decline in price, which could leave institutional investors with limited time to respond. This statistical measure indicates a higher likelihood of extreme price fluctuations, suggesting increased volatility and risk. Investors should be ready for potential swift changes in the stock's value and adjust their risk tolerance and investment strategy accordingly. Currently, Comtech Telecommunications Corp exhibits a below-average downside deviation. It has an Information Ratio of 0.01 and a Jensen Alpha of 0.05. However, we recommend investors to further scrutinize Comtech Telecommunications Corp's expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding various
market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to gauge Comtech Telecommunications Corp's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Comtech Telecommunications Corp's stock price, adding stress to investors as they witness their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
When is the right time to buy or sell Comtech Telecommunications Corp? Buying stocks such as Comtech Telecommunicatio isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Comtech as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Comtech Telecommunicatio.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Comtech Telecommunications Corp. Please refer to our
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