Boot Barn Story

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BOOT -- USA Stock  

USD 61.73  2.57  4.00%

As many baby boomers are still indifferent towards consumer cyclical space, we will concentrate on both Boot Barn Holdings as well as Duluth Holdings. We are going to break down some of the competitive aspects of both Boot Barn and Duluth.
Published over a month ago
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What should I exit first Boot Barn (NYSE:BOOT) or Duluth Holdings?
By analyzing existing basic indicators between Boot Barn and Duluth, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Duluth with a short position in Boot Barn. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Boot Barn has an asset utilization ratio of 149.24 percent. This implies that the company is making $1.49 for each dollar of assets. An increasing asset utilization means that Boot Barn Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Boot Barn or Duluth is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Boot Barn's Liquidity

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

Correlation Between Boot Barn and Duluth Hld Cl

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Boot Barn together with similar or unrelated positions with a negative correlation. For example, you can also add Duluth Hld to your portfolio. If Duluth Hld is not perfectly correlated to Boot Barn it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Boot Barn for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between BOOT and DLTH for more information.

Note

Are you currently holding both Boot Barn and Duluth Hld in your portfolio?
Please note if you are using this as a pair-trade strategy between Boot Barn and Duluth Hld, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down Boot Barn Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Boot Barn revenue. Based on the latest financial disclosure, Boot Barn Holdings reported 804.91 M of revenue. This is 88.71% lower than that of the Consumer Cyclical sector and significantly higher than that of the Apparel Retail industry. The revenue for all United States stocks is 91.47% higher than that of Boot Barn Holdings. As for Duluth Holdings we see revenue of 642.47 M, which is much higher than that of the Apparel Retail

Boot Barn804.91 Million
Sector0.0
Duluth642.47 Million
804.9 M
Boot Barn
Sector
642.5 M
Duluth

Boot Barn may start a collapse in February

Mean deviation is down to 2.76. It may call for a possible volatility drop. Boot Barn Holdings currently demonstrates below-verage downside deviation. It has Information Ratio of 0.21 and Jensen Alpha of 0.89. However, we do advice investors to further question Boot Barn Holdings expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on Boot Barn

Whereas some firms under the apparel retail industry are still a bit expensive, Boot Barn may offer a potential longer-term growth to private investors. The inconsistency in the assessment between current Boot Barn valuation and our trade advice on Boot Barn is due to the recent market swings and your selection of investing horizon. 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 Boot Barn.

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 Boot Barn Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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