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Should you buy Klx Energy (NASDAQ:KLXE) based on latest technical indicators?

December 9, 2021  By
As many millenniums are trying to avoid energy space, it makes sense to digest Klx Energy Services a little further and try to understand its current market patterns. As we have suggested previously, Klx Energy is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. Klx Energy Services hyperactively responds to market trends. A lot of the trends of the company stock price movements has been a demonstration of what is happening in the market overall. Sound basic indicators of the firm may indicate signs of shorter-term price drift for shareholders. Klx Energy Services is scheduled to announce its earnings today. The next earnings report is expected on the 13th of April 2022.
Published over a year ago
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Reviewed by Raphi Shpitalnik

The company's average rating is Hold from 1 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 Klx Energy market sentiment investors' perception of the future value of Klx Energy. Let us look at a few aspects of Klx Energy technical analysis. About 57.0% of the company outstanding shares are owned by corporate insiders. Klx Energy Services recorded a loss per share of 16.96. The entity had not issued any dividends in recent years. The firm had 1-5 split on the 28th of July 2020.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of KLX Energy Services. In general, sophisticated investors focus on analyzing KLX Energy stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build KLX Energy'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 KLX Energy's intrinsic value. In addition to deriving basic predictive indicators for KLX Energy, many experienced traders also check how macroeconomic factors affect KLX Energy price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of KLX Energy'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 does KLX Stands against Peers?

Analyzing KLX Energy 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 KLX Energy 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 KLX Energy Competition Details

How important is KLX Energy's Liquidity

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

KLX Energy Gross Profit

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

Details

Klx Energy Services has a beta of 2.6516. Let's try to break down what Klx Energy'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, Klx Energy will likely underperform. The beta indicator helps investors understand whether Klx Energy 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 Klx Energy 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 entity reported the previous year's revenue of 284.6 M. Net Loss for the year was (125.9 M) with loss before overhead, payroll, taxes, and interest of (34.6 M).

Klx Energy has 87 percent chance to finish above $3.92 in January

The market risk adjusted performance is down to -0.21 as of today. Klx Energy Services exhibits very low volatility with skewness of 0.51 and kurtosis of 1.15. However, we advise investors to further study Klx Energy Services 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 Klx Energy'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 Klx Energy'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.

Klx Energy Implied Volatility

Klx Energy's implied volatility exposes the market's sentiment of Klx Energy Services stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Klx Energy'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 Klx Energy stock will not fluctuate a lot when Klx Energy's options are near their expiration.

Our Final Perspective on Klx Energy

Although few other entities in the oil & gas equipment & services industry are either recovering or due for a correction, Klx Energy may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Klx Energy 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 Klx Energy.

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Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of KLX Energy Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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