The company's average rating is Sell from 3 analysts.
We provide trade advice to complement the prevailing
expert consensus on Eargo Inc. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
The company has Net Profit Margin of
(63.71) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of
(56.6) %, which entails that for every $100 of revenue, it lost -0.57.
The successful prediction of Eargo,
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Eargo, Inc, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Eargo, based on Eargo, hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Eargo,'s
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Eargo,'s related companies.
Use Technical Analysis to project Eargo, expected Price
Eargo, technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, delisted stock market cycles, or different charting patterns.
A focus of Eargo, technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Eargo, trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Breaking down Eargo, Indicators
The big decline in price over the last few months for Eargo Inc could raise concerns from retail investors as the firm is trading at a share price of
1.29 on
1,423,800 in volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit
market volatility in
April. However, diversifying your holdings with Eargo Inc or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.62. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Eargo partners.
Deferred Revenue Breakdown
Eargo Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to grow to about 409.6
K this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Eargo Deferred Revenue is relatively stable at the moment as compared to the past year. Eargo reported last year Deferred Revenue of 357,650
| 2010 | 161,000 |
| 2019 | 675,000 |
| 2020 | 311,000 |
| 2021 | 357,650 |
| 2022 | 409,587 |
Momentum Analysis of Eargo suggests possible reversal in June
The information ratio is down to -0.19 as of today.
As of the 28th of May, Eargo shows the
coefficient of variation of
(524.31), and Mean Deviation of 5.89. Eargo Inc
technical analysis allows you to utilize
historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen
technical drivers for Eargo Inc, which can be compared to its rivals. Please confirm
Eargo Inc treynor ratio, as well as the
relationship between the downside variance and
kurtosis to decide if Eargo Inc is priced favorably, providing market reflects its regular price of 1.29 per share. Given that Eargo is a hitting penny stock territory we advise to closely look at its
total risk alpha.
The Bottom Line
While some other companies in the medical devices industry are either recovering or due for a correction, Eargo may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of Eargo at this time. The Eargo Inc risk-reward trade off is not appealing enough to do any trading. 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 Eargo.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Eargo, Inc. Please refer to our
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