TAL Education Stock Buy Hold or Sell Recommendation

TAL
 Stock
  

USD 4.94  0.18  3.78%   

Considering the 90-day investment horizon and your bold attitude towards risk, our recommendation regarding TAL Education Group is 'Hold'. Macroaxis provides TAL Education buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TAL positions. The advice algorithm takes into account all of TAL Education's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from TAL Education's buy-and-hold perspective. Additionally, take a look at TAL Education 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. We conduct extensive research on individual companies such as TAL Education and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards TAL Education Group.

Execute TAL Education Buy or Sell Advice

The TAL Education recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on TAL Education Group. Macroaxis does not own or have any residual interests in TAL Education Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute TAL Education's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell TAL EducationBuy TAL Education
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon TAL Education Group has a Risk Adjusted Performance of 0.0398, Jensen Alpha of 0.1562, Total Risk Alpha of 0.3794, Sortino Ratio of 0.0433 and Treynor Ratio of 0.195
We provide advice to complement the current expert consensus on TAL Education. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available now. To make sure TAL Education Group is not overpriced, please validate all TAL Education fundamentals, including its gross profit, short ratio, current liabilities, as well as the relationship between the total debt and market capitalization . Given that TAL Education Group has a price to book of 0.61 X, we advise you to double-check TAL Education Group market performance and probability of bankruptcy to ensure the company can sustain itself next year given your current risk tolerance and investing horizon.

TAL Education Trading Alerts and Improvement Suggestions

TAL Education Group has very high historical volatility over the last 90 days
TAL Education Group is unlikely to experience financial distress in the next 2 years
The company reported the last year's revenue of 3.23 B. Reported Net Loss for the year was (1.08 B) with profit before taxes, overhead, and interest of 2.19 B.
TAL Education Group has about 2.89 B in cash with (939.18 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.48.
Roughly 58.0% of the company shares are owned by institutional investors
Latest headline from www.benzinga.com: Why Gaotu Techedu, New Oriental Education And TAL Education Shares Are Soaring Higher - New Oriental Educ - Benzinga

TAL Education current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. TAL Education analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. TAL Education analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price4.74
Target Median Price4.35
Target High Price10.00
Recommendation Mean3.00
Number Of Analyst Opinions14
Target Low Price2.90
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

TAL Education Returns Distribution Density

The distribution of TAL Education's historical returns is an attempt to chart the uncertainty of TAL Education's future price movements. The chart of the probability distribution of TAL Education stock daily returns describes the distribution of returns around its average expected value. We use TAL Education Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of TAL Education returns is essential to provide solid investment advice for TAL Education.
Mean Return0.13Value At Risk-6.3
Potential Upside9.09Standard Deviation4.62
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of TAL Education 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.

TAL Education Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as TAL Education is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading TAL Education Group backward and forwards among themselves. TAL Education's institutional investor refers to the entity that pools money to purchase TAL Education's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Goldman Sachs Group IncCommon Shares49.4 M240.7 M
Morgan StanleyCommon Shares22.7 M110.6 M
Blackrock IncCommon Shares20.5 M99.7 M
Ubs Group AgCommon Shares18.2 M88.8 M
Vanguard Group IncCommon Shares16.8 M81.8 M
Krane Funds Advisors LlcCommon Shares15.5 M75.4 M
Fenghe Fund Management Pte LtdCommon Shares14.6 M71 M
Note, although TAL Education's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

TAL Education 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 TAL Education or Consumer Defensive 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 TAL Education'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 TAL Education 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 DOW
0.16
β
Beta against DOW0.59
σ
Overall volatility
4.67
Ir
Information ratio 0.0398

TAL Education Volatility Alert

TAL Education Group exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate TAL Education Group individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about TAL Education future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure TAL Education'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 TAL Education'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.

TAL Education Implied Volatility

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

TAL Education Fundamentals Vs Peers

Comparing TAL Education'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 TAL Education's direct or indirect competition across all of the common fundamentals between TAL Education and the related equities. This way, we can detect undervalued stocks with similar characteristics as TAL Education or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of TAL Education's fundamental indicators could also be used in its relative valuation, which is a method of valuing TAL Education by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare TAL Education to competition
FundamentalsTAL EducationPeer Average
Return On Equity(24.19) %(0.31) %
Return On Asset(0.56) %(0.14) %
Profit Margin(33.37) %(1.27) %
Operating Margin(4.66) %(5.51) %
Current Valuation434.77 M16.62 B
Shares Outstanding644.88 M571.82 M
Shares Owned by Institutions57.63 %39.21 %
Number of Shares Shorted48.08 M4.71 M
Price to Book0.61 X9.51 X
Price to Sales0.99 X11.42 X
Revenue3.23 B9.43 B
Gross Profit2.19 B27.38 B
EBITDA45.65 M3.9 B
Net Income(1.08 B)570.98 M
Cash and Equivalents2.89 B2.7 B
Cash per Share4.48 X5.01 X
Total Debt177.92 M5.32 B
Debt to Equity0.045 %48.70 %
Current Ratio4.37 X2.16 X
Book Value Per Share8.17 X1.93 K
Cash Flow from Operations(939.18 M)971.22 M
Short Ratio6.14 X4.00 X
Earnings Per Share(0.19) X3.12 X
Price to Earnings To Growth(0.54) X4.89 X
Number of Employees16.2 K18.84 K
Beta-0.15-0.15
Market Capitalization3.19 B19.03 B
Total Asset4.43 B29.47 B
Retained Earnings297.51 M9.33 B
Working Capital(367.66 M)1.48 B
Current Asset184.92 M9.34 B
Current Liabilities552.58 M7.9 B
Z Score10.28.72

About TAL Education Buy or Sell Advice

When is the right time to buy or sell TAL Education Group? Buying financial instruments such as TAL Education 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 TAL Education 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 Manufacturing Thematic Idea Now

Manufacturing
Manufacturing Theme
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 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 Manufacturing Theme or any other thematic opportunities.
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Additionally, take a look at TAL Education 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. Note that the TAL Education Group information on this page should be used as a complementary analysis to other TAL Education's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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Is TAL Education'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 TAL Education. If investors know TAL Education 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 TAL Education 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 TAL Education Group is measured differently than its book value, which is the value of TAL Education that is recorded on the company's balance sheet. Investors also form their own opinion of TAL Education's value that differs from its market value or its book value, called intrinsic value, which is TAL Education'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 TAL Education's market value can be influenced by many factors that don't directly affect TAL Education'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 TAL Education's value and its price as these two are different measures arrived at by different means. Investors typically determine TAL Education value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TAL Education'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.