Brunswick Story

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BC -- USA Stock  

USD 59.34  0.01  0.0168%

It appears Brunswick may not recover as fast as we have hopped for as its price went down 4.42% today. Brunswick's current daily volatility is 3.44 percent, with a beta of 1.55 and an alpha of 0.52 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to go over Brunswick based on its technical indicators. We will evaluate why recent Brunswick price moves suggest a bounce in August.
Published over two months ago
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Should you buy Brunswick after the current volatility slip?
Brunswick reports roughly 503.7 M in cash with 434.5 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.37. On a scale of 0 to 100, Brunswick holds a performance score of 15. The firm shows a Beta (market volatility) of 1.5458, which signifies a somewhat significant risk relative to the market. Let's try to break down what Brunswick'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, Brunswick will likely underperform. Although it is vital to follow Brunswick historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for Brunswick, which you can use to evaluate the performance of the firm. Please makes use of Brunswick sortino ratio, potential upside, skewness, as well as the relationship between the maximum drawdown and semi variance to make a quick decision on whether Brunswick price patterns will revert.
Investing in Brunswick, 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 Brunswick 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.

How important is Brunswick's Liquidity

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

Brunswick Correlation with Peers

Investors in Brunswick can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Brunswick. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Brunswick and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Brunswick 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 Brunswick for more details

Brunswick exotic insider transaction detected

Legal trades by Brunswick insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Brunswick insider trading alert for general transaction of common stock by Randall Altman, Vice President and Controller, on 17th of August 2020. This event was filed by Brunswick Corp with SEC on 2020-08-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Brunswick appears to be very steady, given 1 month investment horizon. Brunswick secures Sharpe Ratio (or Efficiency) of 0.22, which signifies that the company had 0.22% 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 Brunswick technical indicators you can presently evaluate if the expected return of 0.77% is justified by implied risk. Please makes use of Brunswick Mean Deviation of 2.64, downside deviation of 3.24, and Risk Adjusted Performance of 0.3705 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

The case for Brunswick slip maybe to hold

Downside variance is down to 10.49. It may suggest a possible volatility slip. Brunswick shows above-average downside volatility for the selected time horizon. We advise investors to inspect Brunswick further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Brunswick future alpha.

Our Final Take On Brunswick

Whereas some other companies within the leisure industry are still a little expensive, even after the recent corrections, Brunswick may offer a potential longer-term growth to investors. To conclude, as of the 30th of July 2020, our primary 30 days buy-hold-sell recommendation on the company is Strong Buy. However, we believe Brunswick is overvalued with low chance of financial distress for the next two years.

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 Brunswick. Please refer to our Terms of Use for any information regarding our disclosure principles.

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