Encore Wire Stock Buy Hold or Sell Recommendation

WIRE Stock  USD 241.57  0.57  0.24%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Encore Wire is 'Hold'. Macroaxis provides Encore Wire buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WIRE positions. The advice algorithm takes into account all of Encore Wire's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Osisko Gold Ro's buy or sell advice are summarized below:
Real Value
224.42
Target Price
238.67
Hype Value
243.32
Market Value
241.57
Naive Value
244.41
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Encore Wire given historical horizon and risk tolerance towards Encore Wire. When Macroaxis issues a 'buy' or 'sell' recommendation for Encore Wire, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Encore Wire 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 information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.
In addition, we conduct extensive research on individual companies such as Encore and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Encore Wire. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Execute Encore Wire Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Encore WireBuy Encore Wire
Hold

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Encore Wire has a Risk Adjusted Performance of 0.1173, Jensen Alpha of 0.1126, Total Risk Alpha of (0.14), Sortino Ratio of 0.0846 and Treynor Ratio of 0.2356
Macroaxis provides advice on Encore Wire to complement and cross-verify current analyst consensus on Encore Wire. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Encore Wire is not overpriced, please confirm all Encore Wire fundamentals, including its number of shares shorted, debt to equity, market capitalization, as well as the relationship between the gross profit and earnings per share . Given that Encore Wire has a price to earning of 31.30 X, we urge you to verify Encore Wire market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Encore Wire Trading Alerts and Improvement Suggestions

Over 94.0% of the company outstanding shares are owned by institutional investors
On 19th of January 2024 Encore Wire paid $ 0.02 per share dividend to its current shareholders
Latest headline from time.com: Lawmakers Fault Defense Secretary Austin for Failure of Leadership Over Secret Hospital Stay

Encore Wire Returns Distribution Density

The distribution of Encore Wire's historical returns is an attempt to chart the uncertainty of Encore Wire's future price movements. The chart of the probability distribution of Encore Wire stock daily returns describes the distribution of returns around its average expected value. We use Encore Wire price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Encore Wire returns is essential to provide solid investment advice for Encore Wire.
Mean Return
0.34
Value At Risk
-3.51
Potential Upside
3.05
Standard Deviation
1.92
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Encore Wire 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.

Encore Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Encore Wire is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Encore Wire backward and forwards among themselves. Encore Wire's institutional investor refers to the entity that pools money to purchase Encore Wire's securities or originates 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.
Shares
Arrowstreet Capital Limited Partnership2023-12-31
313.9 K
American Century Companies Inc2023-12-31
310.2 K
Royce & Associates, Lp2023-12-31
302.2 K
Northern Trust Corp2023-09-30
268.7 K
Hhg Plc2023-12-31
238.7 K
Charles Schwab Investment Management Inc2023-09-30
219.3 K
Millennium Management Llc2023-09-30
212 K
D. E. Shaw & Co Lp2023-09-30
209.8 K
Bank Of New York Mellon Corp2023-09-30
191.1 K
Blackrock Inc2023-09-30
2.8 M
Vanguard Group Inc2023-09-30
1.8 M
Note, although Encore Wire'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.

Encore Wire Cash Flow Accounts

201920202021202220232024 (projected)
Capital Expenditure(52.5M)(86.1M)(118.3M)(148.4M)(164.6M)(168.9M)
Depreciation Amortization and Accretion17.7M19.5M23.3M26.2M32.1M28.1M
Net Cash Flow or Change in Cash and Cash Equivalents52.6M(47.8M)255.9M291.6M(169.9M)(174.4M)
Issuance Purchase of Equity Shares568K(17.7M)(42.2M)(247.4M)(459.2M)(471.3M)
Payment of Dividends and Other Cash Distributions(1.7M)(1.7M)(1.6M)(1.5M)(1.4M)(1.5M)
Net Cash Flow from Financing(1.1M)(19.3M)(44.4M)(249.0M)(460.6M)(472.7M)
Net Cash Flow from Investing(52.5M)(86.0M)(118.2M)(148.4M)(164.5M)(168.9M)
Net Cash Flow from Operations106.1M57.5M418.4M688.9M455.2M491.1M
Share Based Compensation1.6M1.9M3.8M10.7M21.5M23.2M

Encore Wire 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 Encore Wire or Electrical 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 Encore Wire'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 Encore 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
0.11
β
Beta against NYSE Composite1.38
σ
Overall volatility
1.85
Ir
Information ratio 0.09

Encore Wire Volatility Alert

Encore Wire currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.11. However, we advise investors to further question Encore Wire expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Encore Wire'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 Encore Wire'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.

Encore Wire Fundamentals Vs Peers

Comparing Encore Wire'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 Encore Wire's direct or indirect competition across all of the common fundamentals between Encore Wire and the related equities. This way, we can detect undervalued stocks with similar characteristics as Encore Wire or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Encore Wire's fundamental indicators could also be used in its relative valuation, which is a method of valuing Encore Wire by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Encore Wire to competition
FundamentalsEncore WirePeer Average
Return On Equity0.21-0.31
Return On Asset0.14-0.14
Profit Margin0.14 %(1.27) %
Operating Margin0.13 %(5.51) %
Current Valuation3.25 B16.62 B
Shares Outstanding15.76 M571.82 M
Shares Owned By Insiders5.59 %10.09 %
Shares Owned By Institutions94.41 %39.21 %
Number Of Shares Shorted3.36 M4.71 M
Price To Earning31.30 X28.72 X
Price To Book2.18 X9.51 X
Price To Sales1.48 X11.42 X
Revenue2.57 B9.43 B
Gross Profit1.11 B27.38 B
EBITDA483.43 M3.9 B
Net Income372.4 M570.98 M
Cash And Equivalents573.58 M2.7 B
Cash Per Share31.34 X5.01 X
Debt To Equity0.17 %48.70 %
Current Ratio8.54 X2.16 X
Book Value Per Share111.91 X1.93 K
Cash Flow From Operations455.21 M971.22 M
Short Ratio19.47 X4.00 X
Earnings Per Share21.62 X3.12 X
Price To Earnings To Growth2.09 X4.89 X
Target Price287.33
Number Of Employees1.63 K18.84 K
Beta1.31-0.15
Market Capitalization3.81 B19.03 B
Total Asset1.97 B29.47 B
Retained Earnings2.51 B9.33 B
Working Capital1.05 B1.48 B
Current Asset366.38 M9.34 B
Note: Exercise or conversion by Daniel Jones of 30000 shares of Encore Wire subject to Rule 16b-3 [view details]

Encore Wire Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Encore . 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 Encore Wire Buy or Sell Advice

When is the right time to buy or sell Encore Wire? Buying financial instruments such as Encore 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.
 2021 2022 2023 2024 (projected)
Receivables491.1M498.8M475.3M512.8M
Inventories100.8M153.2M163.7M176.6M

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In addition to having Encore Wire 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.

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When determining whether Encore Wire is a strong investment it is important to analyze Encore Wire's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Encore Wire's future performance. For an informed investment choice regarding Encore Stock, refer to the following important reports:
Check out Encore Wire 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 information on how to trade Encore Stock refer to our How to Trade Encore Stock guide.
You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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Is Encore Wire'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 Encore Wire. If investors know Encore 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 Encore Wire listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.50)
Dividend Share
0.08
Earnings Share
21.62
Revenue Per Share
152.179
Quarterly Revenue Growth
(0.09)
The market value of Encore Wire is measured differently than its book value, which is the value of Encore that is recorded on the company's balance sheet. Investors also form their own opinion of Encore Wire's value that differs from its market value or its book value, called intrinsic value, which is Encore Wire'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 Encore Wire's market value can be influenced by many factors that don't directly affect Encore Wire'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 Encore Wire's value and its price as these two are different measures arrived at by different means. Investors typically determine if Encore Wire is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Encore Wire'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.