Is Arm Holdings Stock a Good Investment?
Arm Holdings Investment Advice | ARM |
- Examine Arm Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Arm Holdings' leadership team and their track record. Good management can help Arm Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Arm Holdings' business and its evolving consumer preferences.
- Compare Arm Holdings' performance and market position to its competitors. Analyze how Arm Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if Arm Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Arm Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Arm Holdings plc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Arm Holdings plc is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Arm Holdings Stock
Researching Arm Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.61. Arm Holdings plc had not issued any dividends in recent years.
To determine if Arm Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Arm Holdings' research are outlined below:
| Arm Holdings plc had very high historical volatility over the last 90 days | |
| About 88.0% of the company shares are held by company insiders | |
| Latest headline from gurufocus.com: Nvidias Surprise AI Bet and Arms Bold Move--The Chip Wars Are Just Getting Started |
Arm Holdings Quarterly Cash And Short Term Investments |
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Arm Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Arm Holdings plc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Arm Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Arm Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Arm Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-11-06 | 2024-09-30 | 0.26 | 0.3 | 0.04 | 15 | ||
2024-02-07 | 2023-12-31 | 0.25 | 0.29 | 0.04 | 16 | ||
2024-07-31 | 2024-06-30 | 0.34 | 0.4 | 0.06 | 17 | ||
2024-05-08 | 2024-03-31 | 0.3 | 0.36 | 0.06 | 20 | ||
2023-11-08 | 2023-09-30 | 0.26 | 0.36 | 0.1 | 38 | ||
2025-02-05 | 2024-12-31 | 0.25 | 0.39 | 0.14 | 56 |
Arm Holdings Target Price Consensus
Arm target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Arm Holdings' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 40 | Buy |
Most Arm analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Arm stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Arm Holdings plc, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationArm Holdings Target Price Projection
Arm Holdings' current and average target prices are 159.54 and 145.28, respectively. The current price of Arm Holdings is the price at which Arm Holdings plc is currently trading. On the other hand, Arm Holdings' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Arm Holdings Market Quote on 17th of February 2025
Target Price
Analyst Consensus On Arm Holdings Target Price
Arm Holdings Analyst Ratings
Arm Holdings' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Arm Holdings stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Arm Holdings' financials, market performance, and future outlook by experienced professionals. Arm Holdings' historical ratings below, therefore, can serve as a valuable tool for investors.Arm Holdings' market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 168.16 B.Market Cap |
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Arm Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.10 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.04 | 0.07 | |
| Return On Equity | 0.07 | 0.12 |
Determining Arm Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if Arm Holdings is a good buy. For example, gross profit margin measures Arm Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Arm Holdings' profitability and make more informed investment decisions.
Basic technical analysis of Arm Stock
As of the 17th of February 2025, Arm Holdings shows the Risk Adjusted Performance of 0.0429, downside deviation of 3.44, and Mean Deviation of 3.07. Arm Holdings plc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Arm Holdings plc downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Arm Holdings plc is priced correctly, providing market reflects its regular price of 159.54 per share. Given that Arm Holdings has jensen alpha of 0.1872, we suggest you to validate Arm Holdings plc's prevailing market performance to make sure the company can sustain itself at a future point.Arm Holdings' Outstanding Corporate Bonds
Arm Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Arm Holdings plc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Arm bonds can be classified according to their maturity, which is the date when Arm Holdings plc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Arm Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Arm Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0429 | |||
| Market Risk Adjusted Performance | 0.1654 | |||
| Mean Deviation | 3.07 | |||
| Semi Deviation | 3.22 | |||
| Downside Deviation | 3.44 | |||
| Coefficient Of Variation | 2043.39 | |||
| Standard Deviation | 4.06 | |||
| Variance | 16.45 | |||
| Information Ratio | 0.0462 | |||
| Jensen Alpha | 0.1872 | |||
| Total Risk Alpha | 0.1822 | |||
| Sortino Ratio | 0.0544 | |||
| Treynor Ratio | 0.1554 | |||
| Maximum Drawdown | 26.12 | |||
| Value At Risk | (4.55) | |||
| Potential Upside | 6.06 | |||
| Downside Variance | 11.86 | |||
| Semi Variance | 10.38 | |||
| Expected Short fall | (3.45) | |||
| Skewness | 0.8619 | |||
| Kurtosis | 2.84 |
| Risk Adjusted Performance | 0.0429 | |||
| Market Risk Adjusted Performance | 0.1654 | |||
| Mean Deviation | 3.07 | |||
| Semi Deviation | 3.22 | |||
| Downside Deviation | 3.44 | |||
| Coefficient Of Variation | 2043.39 | |||
| Standard Deviation | 4.06 | |||
| Variance | 16.45 | |||
| Information Ratio | 0.0462 | |||
| Jensen Alpha | 0.1872 | |||
| Total Risk Alpha | 0.1822 | |||
| Sortino Ratio | 0.0544 | |||
| Treynor Ratio | 0.1554 | |||
| Maximum Drawdown | 26.12 | |||
| Value At Risk | (4.55) | |||
| Potential Upside | 6.06 | |||
| Downside Variance | 11.86 | |||
| Semi Variance | 10.38 | |||
| Expected Short fall | (3.45) | |||
| Skewness | 0.8619 | |||
| Kurtosis | 2.84 |
Consider Arm Holdings' intraday indicators
Arm Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Arm Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0324 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 158.73 | |||
| Day Typical Price | 159.0 | |||
| Market Facilitation Index | 5.22 | |||
| Price Action Indicator | 0.81 | |||
| Relative Strength Index | 56.81 |
Arm Holdings Corporate Filings
6K | 5th of February 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 25th of September 2024 Other Reports | ViewVerify | |
| 17th of June 2024 Other Reports | ViewVerify | |
| 29th of May 2024 Other Reports | ViewVerify |
Arm Stock media impact
Far too much social signal, news, headlines, and media speculation about Arm Holdings that are available to investors today. That information is available publicly through Arm media outlets and privately through word of mouth or via Arm internal channels. However, regardless of the origin, that massive amount of Arm data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Arm Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Arm Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Arm Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Arm Holdings alpha.
Arm Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Arm Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Arm Holdings plc Historical Investor Sentiment
Investor biases related to Arm Holdings' public news can be used to forecast risks associated with an investment in Arm. The trend in average sentiment can be used to explain how an investor holding Arm can time the market purely based on public headlines and social activities around Arm Holdings plc. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Arm Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arm Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Arm Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on Arm Holdings.
Arm Holdings Maximum Pain Price Across May 16th 2025 Option Contracts
Arm Holdings' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Arm Holdings close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Arm Holdings' options.
Arm Holdings Corporate Management
| Tamika Smith | Senior Officer | Profile | |
| Spencer Collins | Executive Officer | Profile | |
| Drew Henry | Executive Ecosystem | Profile | |
| Ami Badani | Chief Officer | Profile | |
| Kirsty Gill | Executive Officer | Profile |
Already Invested in Arm Holdings plc?
The danger of trading Arm Holdings plc is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Arm Holdings is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Arm Holdings. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Arm Holdings plc is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Arm Holdings plc is a strong investment it is important to analyze Arm Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arm Holdings' future performance. For an informed investment choice regarding Arm Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arm Holdings plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arm Holdings. If investors know Arm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.994 | Earnings Share 0.77 | Revenue Per Share | Quarterly Revenue Growth 0.193 | Return On Assets |
The market value of Arm Holdings plc is measured differently than its book value, which is the value of Arm that is recorded on the company's balance sheet. Investors also form their own opinion of Arm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Arm Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arm Holdings' market value can be influenced by many factors that don't directly affect Arm Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Arm Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Arm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arm Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.