The company's average rating is Strong Buy 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 Aehr Test market sentiment investors' perception of the future value of Aehr Test. Let us look at a few aspects of Aehr Test technical analysis. About
14.0% of the company shares are held by company insiders. Aehr Test Systems has Price/Earnings (P/E) ratio of 256.25. The entity recorded a loss per share of
0.19. The firm had not issued any dividends in recent years.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Aehr Test Systems. In general, sophisticated investors focus on analyzing Aehr Test stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Aehr Test'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
Aehr Test's intrinsic value. In addition to deriving basic predictive indicators for Aehr Test, many experienced traders also check how macroeconomic factors affect Aehr Test 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 Aehr Test'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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Aehr Test. Your research has to be compared to or analyzed against Aehr Test's peers to derive any actionable benefits. When done correctly, Aehr Test's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Aehr Test Systems.
How important is Aehr Test's Liquidity
Aehr Test
financial leverage refers to using borrowed capital as a funding source to finance Aehr Test Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aehr Test 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 Aehr Test'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 Aehr Test'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 Aehr Test's total debt and its cash.
Aehr Test Gross Profit
Aehr Test Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aehr Test 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 Aehr Test Gross Profit growth over the last 10 years. Please check Aehr Test's
gross profit and other
fundamental indicators for more details.
Closer look at Aehr Test Mean Deviation
Aehr Test Systems has current Mean Deviation of 4.76. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 4.76 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Aehr Test |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Aehr Test Mean Deviation to its closest peers:
| AEHR | 4.762488337924702 |
| DQ | 6.76 |
| EMAN | 6.07 |
| ENTG | 2.63 |
| EVTN | 19.16 |
Time to sell Aehr Test is now
Standard deviation is down to 6.42. It may connote a possible volatility fall. Aehr Test Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aehr Test Systems independently to ensure intended market timing strategies are aligned with expectations about Aehr Test volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aehr Test'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 Aehr Test'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.
Our Final Take On Aehr Test
While few other entities in the semiconductor equipment & materials industry are either recovering or due for a correction, Aehr Test may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor short any shares of Aehr Test at this time. The Aehr Test Systems risk-reward trade off is not appealing enough to do any trading. 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 Aehr Test.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Aehr Test Systems. Please refer to our
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