Macroaxis Stories

Is Youdao (USA Stocks:DAO) a new disruptor?

January 7, 2023  By
It seems Youdao will continue to recover much faster as its share price surged up 5.84% today. The company current daily volatility is 6.99 percent, with a beta of 1.18 and an alpha of 0.78 over Dow Jones Industrial. As many millenniums are trying to avoid current volatility, it makes sense to outline Youdao Inc a little further and try to understand its current market patterns. We will cover the possibilities of making Youdao into a steady grower in February.
Published over a year ago
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Reviewed by Rifka Kats

This firm runs under Diversified Consumer Services sector within Consumer Discretionary industry.
Youdao holds a performance score of 13 on a scale of zero to a hundred. The firm maintains a market beta of 1.1758, which attests to a somewhat significant risk relative to the market. Let's try to break down what Youdao'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, Youdao will likely underperform. Although it is vital to follow Youdao Inc historical price patterns, it is good to be conservative about what you can do with the information regarding equity current price history. Our philosophy towards determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Youdao Inc expected return of 1.27 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Youdao Inc variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to analyze future returns on Youdao Inc.
Investing in Youdao, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Youdao along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Youdao. Your research has to be compared to or analyzed against Youdao's peers to derive any actionable benefits. When done correctly, Youdao'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 Youdao Inc.

How important is Youdao's Liquidity

Youdao financial leverage refers to using borrowed capital as a funding source to finance Youdao Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Youdao 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 Youdao'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 Youdao'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 Youdao's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Youdao, but it might be worth checking our own buy vs. sell analysis

Youdao Gross Profit

Youdao Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Youdao 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 Youdao Gross Profit growth over the last 10 years. Please check Youdao's gross profit and other fundamental indicators for more details.

Youdao Correlation with Peers

Investors in Youdao can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Youdao Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Youdao and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Youdao is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Youdao for more details

Breaking down Youdao Indicators

Youdao is moderately volatile given 3 months investment horizon. Youdao Inc shows Sharpe Ratio of 0.18, which attests that the company had 0.18% of return per unit of risk over the last 3 months. Our standpoint towards determining the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.27% are justified by taking the suggested risk. Use Youdao Inc Mean Deviation of 5.07, downside deviation of 6.0, and Market Risk Adjusted Performance of 0.8253 to evaluate company specific risk that cannot be diversified away.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest Youdao rise

Youdao latest sortino ratio surges over 0.13.
As of the 7th of January, Youdao maintains the Mean Deviation of 5.07, downside deviation of 6.0, and Market Risk Adjusted Performance of 0.8253. Youdao Inc technical analysis makes it possible for you to employ past prices and volume data with the intention to determine a pattern that calculates the direction of the company's future prices. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Youdao Inc, which can be compared to its rivals. Please check out Youdao Inc variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Youdao Inc is priced fairly, providing market reflects its latest price of 7.61 per share. Given that Youdao Inc has jensen alpha of 0.7771, we strongly advise you to confirm Youdao Inc's prevalent market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Youdao

Whereas some other entities within the education & training services industry are still a little expensive, even after the recent corrections, Youdao may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current Youdao valuation and our trade advice on Youdao is due to the recent market swings and your selection of investing horizon. 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 Youdao.

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Editorial Staff

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 Youdao Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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