Eargo Story

<div class='circular--portrait' style='background:#754DEB;color: #F0FFF0;font-size:3em;'>EAR</div>
EAR -- USA Stock  

USD 55.80  7.20  11.43%

While some baby boomers are getting worried about healthcare space, we are going to sum up both, Eargo and Digirad as potential short-term investments. We are going to discuss some of the competitive aspects of both Eargo and Digirad.
Published over a month ago
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Will Digirad (NASDAQ:DRAD) shadow Eargo price growth?
By analyzing existing basic indicators between Eargo and Digirad, 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 Digirad with a short position in Eargo. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. One of the ways to look at asset utilization of Eargo is to check how much profit was generated for every dollar of assets it reports. Eargo Inc shows a negative utilization of assets of -36.42 percent, losing $0.36 for each dollar of assets held by the firm. Inadequate asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Eargo Inc shows how discouraging it operates for each dollar spent on its assets.
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 Eargo or Establishment is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Eargo's Liquidity

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

Correlation Between Eargo and Establishment Labs

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 Eargo together with similar or unrelated positions with a negative correlation. For example, you can also add Establishment Labs to your portfolio. If Establishment Labs is not perfectly correlated to Eargo 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 Eargo 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 EAR and ESTA for more information.

A Deeper look at Eargo

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

Now, let's check Eargo revenue. Based on the latest financial disclosure, Eargo Inc reported 57.39 M of revenue. This is 99.25% lower than that of the Healthcare sector and 97.75% lower than that of the Medical Devices industry. The revenue for all United States stocks is 99.39% higher than that of Eargo. As for Digirad we see revenue of 117.69 M, which is 95.39% lower than that of the Medical Devices

Sector
2.6 B
EAR57.39 Million2.11
Sector2.55 Billion93.58
DRAD117.69 Million4.32

Will Eargo growth be reasonable after the spike?

Treynor ratio is down to 7.19. It may connote a possible volatility fall. Eargo Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Eargo Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Eargo future alpha.

Our Final Take On Eargo

While many of the other players within the medical devices industry are still a little expensive, even after the recent corrections, Eargo may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor exit any shares of Eargo at this time. The Eargo Inc risk-reward trade off is not appealing enough to do any trading. 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 Eargo.

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

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