Loews gains 0.75 percent regardless of modest market pull down
![]() | By Ellen Johnson | Macroaxis Story |
Today's write-up is for all investors who are seriously contemplating on taking a position in Loews. I will summarize the rationale of why Loews stakeholders were not insulted from the new market pull down. The company current daily volatility is 1.22 percent, with beta of -0.07 and alpha of -0.01 over Russell 2000 . What is Loews Target Price Odds to finish over Current Price? Out from normal probability distribution, the odds of Loews to move above current price in 30 days from now is about 21.52%. The Loews Corporation probability density function shows the probability of Loews Stock to fall within a particular range of prices over 30 days . Taking into account the 30 trading days horizon, Loews Corporation has beta of -0.0692 indicating as returns on benchmark increase, returns on holding Loews are expected to decrease at a much smaller rate. During bear market, however, Loews Corporation is likely to outperform the market. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Loews is significantly underperforming Russell 2000 .
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Reviewed by Rifka Kats
Loews has accumulated 12.25 B in total debt with debt to equity ratio (D/E) of 54.7 implying that the organisation may be unable to produce cash to meet its debt commitments. This firm dividends can provide a clue to current valuation of the stock. Loews one year expected dividend income is about $0.13 per share. Lets now take a look at Loews Operating Margin. Based on recorded statements Loews Corporation has Operating Margin of 14.65%. This is 20.6% lower than that of the Financial Services sector, and 145.81% higher than that of Insurance - Property & Casualty industry, The Operating Margin for all stocks is 365.88% lower than Loews. Loews Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Loews Corp, including all of Loews Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Loews Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Loews Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Loews Total Liabilities
Loews Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Loews Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Loews Corp balance sheet include debt obligations and money owed to different Loews Corp vendors, workers, and loan providers. Below is the chart of Loews short long-term liabilities accounts currently reported on its balance sheet. You can use Loews Corp financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Loews Corp's Liquidity
Loews Corp financial leverage refers to using borrowed capital as a funding source to finance Loews Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Loews Corp 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 Loews Corp'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 Loews Corp'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 Loews Corp's total debt and its cash.
An Additional Perspective On Loews Corp
The small decline in market price for the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 50.49 on 1.000 in trading volume. The company management did not add much value to Loews investors in October. However, diversifying your holdings with Loews or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2216. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Loews retains number of employees of 17.9 k. Loews is selling for under 50.87. That is 0.75 percent increase. Started trading at 50.87. Loews Gross Margin is increasing over the last 4 years. Moreover, Loews Return on Average Assets is decreasing over the last 4 years. The previous year value of Loews Return on Average Assets was 0.0001. To conclude, our research shows that Loews is very steady with close to average probability of distress in the next two years. Our final buy vs. sell advice on the business is Cautious Hold.
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