Is Moneygram Intl (NASDAQ:MGI) about to rebound?

As many millenniums are trying to avoid financial services space, it makes sense to concentrate on Moneygram Intl a little further and try to understand its current market patterns. As expected, Moneygram Intl is starting to reaffirm its true potential as stockholders are becoming more and more confident in the future outlook. Much of the drifts of the company stock price movements has been an effusion of what is happening in the market overall. The occurrence of stable technical and fundamental indicators of the company implies a mid-run price swing for stockholders of Moneygram. The next fiscal quarter end is expected on the 31st of December 2021. The stock goes through an active upward rally.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The company's average rating is Hold from 5 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Moneygram Intl market sentiment investors' perception of the future value of Moneygram. Let us look at a few aspects of Moneygram technical analysis.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Moneygram Int. In general, sophisticated investors focus on analyzing Moneygram Int stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Moneygram Int's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Moneygram Int's intrinsic value. In addition to deriving basic predictive indicators for Moneygram Int, many experienced traders also check how macroeconomic factors affect Moneygram Int price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Moneygram Int. Your research has to be compared to or analyzed against Moneygram Int's peers to derive any actionable benefits. When done correctly, Moneygram Int's 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 Moneygram Int.

How does Moneygram Stands against Peers?

Analyzing Moneygram Int competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Moneygram Int across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out Moneygram Int Competition Details

What is driving Moneygram Int Investor Appetite?

Moneygram Intl has a beta of 1.9424. Let's try to break down what Moneygram's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Moneygram Intl will likely underperform. The beta indicator helps investors understand whether Moneygram Intl moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Moneygram deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The current drop in stock price may encourage stockholders to take a closer look at the firm as it is trading at a share price of 6.55 on 3,931,800 in trading volume. The company directors and management have failed to build on market volatilities in November. However, diversifying your overall positions with Moneygram Intl may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.47. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Moneygram Intl partners.

Our perspective of the current Moneygram Intl rise

The treynor ratio is down to -0.2 as of today. Moneygram Intl exhibits very low volatility with skewness of 0.17 and kurtosis of 1.75. However, we advise investors to further study Moneygram Intl technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Moneygram Intl's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Moneygram Intl'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 stocks as prices fall.

Moneygram Intl Implied Volatility

Moneygram Intl's implied volatility exposes the market's sentiment of Moneygram Intl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Moneygram Intl's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Moneygram Intl stock will not fluctuate a lot when Moneygram Intl's options are near their expiration.

The Bottom Line

While some other companies within the credit services industry are still a little expensive, even after the recent corrections, Moneygram Intl may offer a potential longer-term growth to stockholders. To summarize, as of the 5th of December 2021, our overall 90 days buy-sell recommendation on the company is Cautious Hold. We believe Moneygram Intl is currently undervalued with close to average chance of financial distress for the next two years.

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Editorial Staff

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 Raphi Shpitalnik do not own shares of Moneygram Int. Please refer to our Terms of Use for any information regarding our disclosure principles.

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