Advanced Story

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AEIS -- USA Stock  

USD 106.94  4.43  3.98%

It seems Advanced Energy may not recover as fast as we have hopped for as its price went down 8.73% today. The company current daily volatility is 2.79 percent, with a beta of 2.05 and an alpha of 0.3 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to sum up Advanced Energy Industries based on its technical indicators. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Is Advanced Energy (NASDAQ:AEIS) way too risky for millennials?
Advanced Energy Industries currently holds roughly 431.58 M in cash with 153.59 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.28. Advanced Energy currently holds 444.61 M in liabilities with Debt to Equity (D/E) ratio of 0.58, which is about average as compared to similar companies. This firm has a current ratio of 2.85, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Investing in Advanced Energy, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Advanced Energy along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Advanced Energy's stock 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 use the tools below to analyze the current value of Advanced Energy in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Advanced Energy. Your research has to be compared to or analyzed against Advanced Energy's peers to derive any actionable benefits. When done correctly, Advanced Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Advanced Energy.

How important is Advanced Energy's Liquidity

Advanced Energy financial leverage refers to using borrowed capital as a funding source to finance Advanced Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advanced Energy 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. Please check the breakdown between Advanced Energy's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Advanced Energy, but it might be worth checking our own buy vs. sell analysis

Advanced Energy Correlation with Peers

Investors in Advanced can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Advanced Energy. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Advanced Energy and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Advanced is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Advanced for more details

Breaking it down a bit more

Advanced Energy appears to be very steady, given 1 month investment horizon. Advanced Energy Indu secures Sharpe Ratio (or Efficiency) of 0.19, which signifies that the company had 0.19% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Advanced Energy Indu technical indicators you can presently evaluate if the expected return of 0.54% is justified by implied risk. Please makes use of Advanced Energy Indu Mean Deviation of 2.36, downside deviation of 2.53, and Risk Adjusted Performance of 0.2005 to double-check if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are you still wavering about Advanced Energy?

Advanced Energy latest standard deviation advances over 3.02. Advanced Energy Industries currently demonstrates below-verage downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.3. However, we do advice investors to further question Advanced Energy Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Advanced Energy

While some other firms in the electrical equipment & parts industry are either recovering or due for a correction, Advanced may not be as strong as the others in terms of longer-term growth potentials. While some retail investors may not share our view, we believe it may be a good time to increase your existing holdings in Advanced. 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 Advanced Energy.

About Contributor

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 Raphi Shpitalnik do not own shares of Advanced Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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