The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arco Platform has an asset utilization ratio of 467.89 percent. This indicates that the company is making $4.68 for each dollar of assets. An increasing asset utilization means that Arco Platform is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of Arco Platform? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Arco Platform this year
Annual and quarterly reports issued by Arco Platform are formal
financial statements that are published yearly and quarterly and sent to Arco stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Arco Platform often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Is Arco Platform a risky opportunity?
Let's check the volatility. Arco Platform is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Arco Platform (NASDAQ:ARCE) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of an Arco Platform stock makes you a part-owner of that company.
Arco Platform Current Consensus
Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Arco Platform. The Arco Platform consensus assessment is calculated by taking the average estimates from all of the analysts covering Arco Platform
| Strong Buy | 2 | 100.0 |
| Buy | 0 | 0.0 |
| Hold | 0 | 0.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Will price continue to surge in December 2021?
Value At Risk just dropped to -5.14, may indicate upcoming price decrease. Arco Platform exhibits very low volatility with skewness of 0.98 and kurtosis of 3.38. However, we advise investors to further study Arco Platform 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 Arco Platform'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 Arco Platform'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.
Arco Platform Implied Volatility
Arco Platform's implied volatility exposes the market's sentiment of Arco Platform stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Arco Platform'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 Arco Platform stock will not fluctuate a lot when Arco Platform's options are near their expiration.
Although other companies under the education & training services industry are still a bit expensive, Arco Platform may offer a potential longer-term growth to shareholders. To conclude, as of the 28th of November 2021, we see that Arco Platform slowly supersedes the market. The firm is
undervalued with
very low odds of financial distress within the next 24 months. Our current 90 days buy-hold-sell advice on the firm is
Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Arco Platform. Please refer to our
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