Peabody Energy's average rating is Hold from 6 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Peabody Energy market sentiment investors' perception of the future value of Peabody. Let us look at a few aspects of Peabody technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Peabody Energy Corp. In general, sophisticated investors focus on analyzing Peabody Energy stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Peabody Energy's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Peabody Energy's intrinsic value. In addition to deriving basic predictive indicators for Peabody Energy, many experienced traders also check how macroeconomic factors affect Peabody Energy price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Peabody Energy'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 note, it is not enough to conduct a financial or market analysis of a single entity such as Peabody Energy. Your research has to be compared to or analyzed against Peabody Energy's peers to derive any actionable benefits. When done correctly, Peabody Energy's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Peabody Energy Corp.
How important is Peabody Energy's Liquidity
Peabody Energy
financial leverage refers to using borrowed capital as a funding source to finance Peabody Energy Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Peabody 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. Financial leverage can amplify the potential profits to Peabody Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Peabody Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Peabody Energy's total debt and its cash.
Peabody Energy Gross Profit
Peabody Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Peabody Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Peabody Energy Gross Profit growth over the last 10 years. Please check Peabody Energy's
gross profit and other
fundamental indicators for more details.
Closer look at Peabody Energy Downside Variance
Peabody Energy has current Downside Variance of 48.11. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 48.11 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare Peabody Energy Downside Variance to its closest peers:
| BTU | 48.11 |
| NC | 8.17 |
| CCR | 21.75 |
| NRP | 7.75 |
Our take on today Peabody Energy gain
Newest skewness is at 1.82. Peabody Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Peabody Energy independently to ensure intended market timing strategies are aligned with expectations about Peabody Energy volatility.
Our Conclusion on Peabody Energy
Whereas some other entities under the thermal coal industry are still a bit expensive, Peabody Energy may offer a potential longer-term growth to private investors. The bottom line, as of the 4th of January 2021, our analysis shows that Peabody Energy almost neglects market trends. The firm is
overvalued and projects
below average odds of financial turmoil for the next 2 years. Our present 30 days Buy-Hold-Sell recommendation on the firm is
Strong Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Peabody Energy Corp. Please refer to our
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