Ceragon Stock Story

CRNT
 Stock
  

USD 2.44  0.01  0.41%   

As many millenniums are trying to avoid technology space, it makes sense to review Ceragon Networks a little further and try to understand its current market patterns. As we have suggested previously, Ceragon Networks is beginning its drop as private investors shift to be more bearish due to the increased sector volatility. The returns on the market and returns on Ceragon Networks appear slightly related to each other for the last few months. Stable basic indicators of the firm may also call for signals of mid-term gains for Ceragon private investors. Ceragon Networks is scheduled to announce its earnings today.
Published over two weeks ago
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Our newest technical analysis of Ceragon Networks (NASDAQ:CRNT)

The company's average rating is Buy from 3 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 Ceragon Networks market sentiment investors' perception of the future value of Ceragon. Let us look at a few aspects of Ceragon technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Ceragon Networks. In general, we focus on analyzing Ceragon Networks stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Ceragon Networks'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 Ceragon Networks's intrinsic value. In addition to deriving basic predictive indicators for Ceragon Networks, we also check how macroeconomic factors affect Ceragon Networks 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, frequently view the market will even out over time. This tendency of Ceragon Networks' 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 Ceragon Networks 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 Ceragon Networks. Your research has to be compared to or analyzed against Ceragon Networks' peers to derive any actionable benefits. When done correctly, Ceragon Networks' 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 Ceragon Networks.

How does Ceragon Stands against Peers?

Analyzing Ceragon Networks competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Ceragon Networks across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Ceragon Networks Competition Details

How does Ceragon utilize its cash?

To perform a cash flow analysis of Ceragon Networks, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ceragon Networks is receiving and how much cash it distributes out in a given period. The Ceragon Networks cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ceragon Networks Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Ceragon Networks reported Net Cash Flow from Operations of (15.02 Million) in 2021

Closer look at Ceragon Networks Mean Deviation

Ceragon Networks has current Mean Deviation of 3.03. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
3.03
SUM = Summation notation
RET DEV = Sum of return deviations of Ceragon Networks
N = Number of calculation points for selected time horizon
Let's now compare Ceragon Networks Mean Deviation to its closest peers:
CRNT
WMT
PG
CSCO
AXP
CRNT3.028037121212122
WMT1.45
PG1.27
CSCO1.54
AXP1.93

Ceragon Networks has 85 percent chance to drop way below $2.55 in September

The total risk alpha is down to 0.67 as of today. Ceragon Networks shows above-average downside volatility for the selected time horizon. We advise investors to inspect Ceragon Networks further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Ceragon Networks future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ceragon Networks' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ceragon Networks' 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.

Ceragon Networks Implied Volatility

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

Our Final Takeaway

Whereas some firms in the communication equipment industry are either recovering or due for a correction, Ceragon Networks may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 1st of August 2022, we believe Ceragon Networks is currently undervalued. It follows the market closely and projects low probability of distress in the next two years. Our actual 90 days buy vs. sell advice on the firm is Buy.

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 Raphi Shpitalnik do not own shares of Ceragon Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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