Applied Opt Stock Buy Hold or Sell Recommendation
AAOI Stock | USD 10.85 0.41 3.64% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Applied Opt is 'Strong Sell'. Macroaxis provides Applied Opt buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AAOI positions. The advice algorithm takes into account all of Applied Opt's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Applied Opt's buy or sell advice are summarized below:
Real Value 13.08 | Hype Value 10.66 | Market Value 10.85 | Naive Value 11.43 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Applied Opt given historical horizon and risk tolerance towards Applied Opt. When Macroaxis issues a 'buy' or 'sell' recommendation for Applied Opt, the advice is generated through an automated system that utilizes algorithms and statistical models.
Applied |
Execute Applied Opt Buy or Sell Advice
The Applied recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Applied Opt. Macroaxis does not own or have any residual interests in Applied Opt or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Applied Opt's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Slightly risky | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Applied Opt Trading Alerts and Improvement Suggestions
Applied Opt generated a negative expected return over the last 90 days | |
Applied Opt has high historical volatility and very poor performance | |
The company reported the previous year's revenue of 217.65 M. Net Loss for the year was (56.05 M) with profit before overhead, payroll, taxes, and interest of 33.63 M. | |
Applied Opt currently holds about 26.27 M in cash with (7.93 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.92. | |
Roughly 67.0% of the company shares are held by institutions such as insurance companies |
Applied Opt Returns Distribution Density
The distribution of Applied Opt's historical returns is an attempt to chart the uncertainty of Applied Opt's future price movements. The chart of the probability distribution of Applied Opt daily returns describes the distribution of returns around its average expected value. We use Applied Opt price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Applied Opt returns is essential to provide solid investment advice for Applied Opt.
Mean Return | -1.29 | Value At Risk | -5.71 | Potential Upside | 3.95 | Standard Deviation | 3.54 |
Return Density |
Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Applied Opt historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Applied Opt Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Applied Opt or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Applied Opt's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Applied stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -1.29 | |
β | Beta against NYSE Composite | -0.18 | |
σ | Overall volatility | 6.41 | |
Ir | Information ratio | -0.39 |
Applied Opt Volatility Alert
Applied Opt exhibits very low volatility with skewness of 0.46 and kurtosis of 0.78. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Applied Opt's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Applied Opt'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 financial instruments as prices fall.Applied Opt Fundamentals Vs Peers
Comparing Applied Opt's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Applied Opt's direct or indirect competition across all of the common fundamentals between Applied Opt and the related equities. This way, we can detect undervalued stocks with similar characteristics as Applied Opt or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Applied Opt's fundamental indicators could also be used in its relative valuation, which is a method of valuing Applied Opt by comparing valuation metrics with those of similar companies.
Better Than Average | Worse Than Average | Compare Applied Opt to competition |
Fundamentals | Applied Opt | Peer Average |
Return On Equity | -0.28 | -0.31 |
Return On Asset | -0.0648 | -0.14 |
Profit Margin | (0.26) % | (1.27) % |
Operating Margin | (0.07) % | (5.51) % |
Current Valuation | 503.08 M | 16.62 B |
Shares Outstanding | 38.4 M | 571.82 M |
Shares Owned By Insiders | 4.24 % | 10.09 % |
Shares Owned By Institutions | 67.12 % | 39.21 % |
Number Of Shares Shorted | 9.11 M | 4.71 M |
Price To Earning | 25.66 X | 28.72 X |
Price To Book | 2.01 X | 9.51 X |
Price To Sales | 1.98 X | 11.42 X |
Revenue | 217.65 M | 9.43 B |
Gross Profit | 33.63 M | 27.38 B |
EBITDA | (26.84 M) | 3.9 B |
Net Income | (56.05 M) | 570.98 M |
Cash And Equivalents | 26.27 M | 2.7 B |
Cash Per Share | 0.92 X | 5.01 X |
Total Debt | 121.07 M | 5.32 B |
Debt To Equity | 0.76 % | 48.70 % |
Current Ratio | 1.43 X | 2.16 X |
Book Value Per Share | 5.63 X | 1.93 K |
Cash Flow From Operations | (7.93 M) | 971.22 M |
Short Ratio | 4.13 X | 4.00 X |
Earnings Per Share | (1.75) X | 3.12 X |
Price To Earnings To Growth | 0.51 X | 4.89 X |
Target Price | 18.0 | |
Number Of Employees | 2.15 K | 18.84 K |
Beta | 2.05 | -0.15 |
Market Capitalization | 432.36 M | 19.03 B |
Total Asset | 389.19 M | 29.47 B |
Retained Earnings | (265.12 M) | 9.33 B |
Working Capital | 79.25 M | 1.48 B |
Note: Disposition of 2089 shares by David Kuo of Applied Opt at 12.12 subject to Rule 16b-3 [view details]
Applied Opt Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Applied . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Applied Opt Buy or Sell Advice
When is the right time to buy or sell Applied Opt? Buying financial instruments such as Applied Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Applied Opt in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Precious Metals Thematic Idea Now
Precious Metals
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Precious Metals theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Precious Metals Theme or any other thematic opportunities.
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Check out Applied Opt Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more detail on how to invest in Applied Stock please use our How to Invest in Applied Opt guide.You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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When running Applied Opt's price analysis, check to measure Applied Opt's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Applied Opt is operating at the current time. Most of Applied Opt's value examination focuses on studying past and present price action to predict the probability of Applied Opt's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Opt's price. Additionally, you may evaluate how the addition of Applied Opt to your portfolios can decrease your overall portfolio volatility.
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Is Applied Opt's industry 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 Applied Opt. If investors know Applied 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 Applied Opt listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Applied Opt is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Opt's value that differs from its market value or its book value, called intrinsic value, which is Applied Opt's 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 Applied Opt's market value can be influenced by many factors that don't directly affect Applied Opt's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Applied Opt's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Opt is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Opt's 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.