Should you drop Dole Plc (NYSE:DOLE) after the latest volatility surge?

DOLE Stock  USD 11.49  0.04  0.35%   
Given the investment horizon of 90 days Dole Plc is expected to generate 1.66 times more return on investment than the market. However, the company is 1.66 times more volatile than its market benchmark. It trades about 0.06 of its potential returns per unit of risk. The DOW is currently generating roughly 0.0 per unit of risk. As many conservative investors are still indifferent towards latest market risk, it is prudent, from our point of view, to digest Dole Plc's current volatility. We will go over odds for Dole Plc to generate above-average margins next week.
Published over two months ago
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The company conducts business under Consumer Defensive sector and is part of Farm Products industry.
Volatility is a rate at which the price of Dole PLC or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Dole PLC may increase or decrease. In other words, similar to Dole PLC's beta indicator, it measures the risk of Dole PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dole PLC fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Dole PLC's Liquidity

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

How does Dole PLC utilize its cash?

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

An Additional Perspective On Dole PLC

Dole Plc reported the previous year's revenue of 8.8 B. Net Loss for the year was (17.89 M) with profit before overhead, payroll, taxes, and interest of 349.13 M.

Over 3 percent surge for Dole Plc. What does it mean for shareholders?

Downside deviation is down to 2.35. It may indicate a possible volatility dip. Dole Plc currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.03. However, we advise investors to further question Dole Plc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dole Plc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dole Plc's 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.

Our Conclusion on Dole Plc

Although some companies within the farm products industry are still a little expensive, even after the recent corrections, Dole Plc may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current Dole Plc valuation and our trade advice on Dole Plc 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 Dole Plc.

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 Ellen Johnson do not own shares of Dole PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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