Abercrombie Stock Story

ANF
 Stock
  

USD 20.55  0.68  3.20%   

Abercrombie Fitch Interest Coverage is projected to slightly decrease based on the last few years of reporting. The past year's Interest Coverage was at 9.09. The current year Inventory Turnover is expected to grow to 3.39, whereas Long Term Debt to Equity is forecasted to decline to 0.20. Today's short post will digest Abercrombie Fitch as your potential position. We will discuss the question of why shareholders should continue to be confident in Abercrombie Fitch outlook.
Published over two months ago
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Abercrombie Fitch (NYSE:ANF) is to drop even more in June

Abercrombie Fitch has a beta of 1.606. Let's try to break down what Abercrombie's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Abercrombie Fitch will likely underperform. The beta indicator helps investors understand whether Abercrombie Fitch moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Abercrombie deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Abercrombie Fitch. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Abercrombie Fitch

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Abercrombie Fitch'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 use the tools below to analyze the current value of Abercrombie Fitch 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 Abercrombie Fitch. Your research has to be compared to or analyzed against Abercrombie Fitch's peers to derive any actionable benefits. When done correctly, Abercrombie Fitch'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 Abercrombie Fitch.

How important is Abercrombie Fitch's Liquidity

Abercrombie Fitch financial leverage refers to using borrowed capital as a funding source to finance Abercrombie Fitch ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Abercrombie Fitch 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 Abercrombie Fitch'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 Abercrombie Fitch, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

Abercrombie Fitch exhibits very low volatility with skewness of -0.9 and kurtosis of 1.16. However, we advise investors to further study Abercrombie Fitch technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abercrombie Fitch'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 Abercrombie Fitch'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.

Abercrombie Fitch Implied Volatility

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

Returns Breakdown

Return on Investment7.12
Return on Assets0.0558
Return on Equity0.17
Return Capital0.1
Return on Sales0.0637

Are Abercrombie Fitch technical indicators showing a reversion?

Latest value at risk indicator falls down to -7.31. Possible price growth? Abercrombie Fitch exhibits very low volatility with skewness of -0.9 and kurtosis of 1.16. However, we advise investors to further study Abercrombie Fitch technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abercrombie Fitch'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 Abercrombie Fitch'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.

Abercrombie Fitch Implied Volatility

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

Our Conclusion on Abercrombie Fitch

Although some other companies in the apparel retail industry are either recovering or due for a correction, Abercrombie may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Abercrombie nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Abercrombie Fitch.

Editorial Staff

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 Vlad Skutelnik do not own shares of Abercrombie Fitch. Please refer to our Terms of Use for any information regarding our disclosure principles.

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