CPI Aerostructures Stock Story

CVU

Stock

USD 1.59 0.21 11.67%

Macroaxis Story

While some of us are excited about industrials space, it makes sense to review CPI Aerostructures in greater detail to make a better perception of its potential. As we have suggested previously, CPI Aerostructures 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 CPI Aerostructures 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 CPI Aerostructures private investors. CPI Aerostructures is scheduled to announce its earnings today.

Published over three months ago

View all stories for CPI Aerostructures | View All Stories

Should I shadow CPI Aerostructures (NYSEMKT:CVU) private investors?

CPI Aerostructures's average rating is Hold from 1 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 CPI Aerostructures market sentiment investors' perception of the future value of CPI Aerostructures. Let us look at a few aspects of CPI Aerostructures technical analysis.

Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of CPI Aerostructures. In general, we focus on analyzing CPI Aerostructures stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build CPI Aerostructures'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 CPI Aerostructures's intrinsic value. In addition to deriving basic predictive indicators for CPI Aerostructures, we also check how macroeconomic factors affect CPI Aerostructures 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 CPI Aerostructures' 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 CPI Aerostructures 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 CPI Aerostructures. Your research has to be compared to or analyzed against CPI Aerostructures' peers to derive any actionable benefits. When done correctly, CPI Aerostructures' 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 CPI Aerostructures.

How important is CPI Aerostructures's Liquidity

CPI Aerostructures financial leverage refers to using borrowed capital as a funding source to finance CPI Aerostructures ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CPI Aerostructures 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 CPI Aerostructures's total debt and its cash.

How does CPI Aerostructures utilize its cash?

To perform a cash flow analysis of CPI Aerostructures, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash CPI Aerostructures is receiving and how much cash it distributes out in a given period. The CPI Aerostructures cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Closer look at CPI Aerostructures Standard Deviation

CPI Aerostructures has current Standard Deviation of 3.58. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.

Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation

SQRT(V)

3.58

SQRT	=	Square root notation
V	=	Variance of CPI Aerostructures returns

Let's now compare CPI Aerostructures Standard Deviation to its closest peers:

CVU

CAE

KAMN

	CVU	3.5828154556461445
	CAE	3.36
	EH	6.28
	GD	1.53
	KAMN	2.44

Is CPI Aerostructures showing indication of lower volatility?

The semi variance is down to 8.62 as of today. CPI Aerostructures shows above-average downside volatility for the selected time horizon. We advise investors to inspect CPI Aerostructures further and ensure that all market timing and asset allocation strategies are consistent with the estimation of CPI Aerostructures future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CPI Aerostructures' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact CPI Aerostructures' 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.

CPI Aerostructures Implied Volatility

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

Our Takeaway on CPI Aerostructures Investment

Whereas some firms under the aerospace & defense industry are still a bit expensive, CPI Aerostructures may offer a potential longer-term growth to private investors. With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of CPI Aerostructures or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 CPI Aerostructures.

Editorial Staff

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

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2022 Macroaxis LLC