The entity'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 Genesco market sentiment investors' perception of the future value of Genesco. Let us look at a few aspects of Genesco technical analysis. The company has Net Profit Margin of
4.74 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of
7.86 %, which entails that for every 100 dollars of revenue, it generated 0.08 of operating income.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Genesco. In general, sophisticated investors focus on analyzing Genesco stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Genesco'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
Genesco's intrinsic value. In addition to deriving basic predictive indicators for Genesco, many experienced traders also check how macroeconomic factors affect Genesco 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 Genesco'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 Genesco. Your research has to be compared to or analyzed against Genesco's peers to derive any actionable benefits. When done correctly, Genesco'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 Genesco.
How does Genesco Stands against Peers?
Analyzing Genesco 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 Genesco 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
Genesco Competition DetailsGenesco Gross Profit
Genesco Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Genesco 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 Genesco Gross Profit growth over the last 10 years. Please check Genesco's
gross profit and other
fundamental indicators for more details.
Is Genesco valued appropriately by the market?
The firm has a beta of 1.2544. Let's try to break down what Genesco's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Genesco will likely underperform. The beta indicator helps investors understand whether Genesco moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Genesco deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
The latest Genesco price slide may raise some interest from institutional investors. The stock closed today at a share price of
54.93 on
580,900 in trading volume. The company directors and management were unable to exploit market volatilities in
April. However, diversifying your overall positions with Genesco can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.33. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Genesco partners.
Are Genesco technical ratios showing a come-back?
Genesco total risk alpha is up to 0.0. Genesco exhibits very low volatility with skewness of 0.6 and kurtosis of 2.11. However, we advise investors to further study Genesco technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Genesco's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Genesco'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.
Genesco Implied Volatility
Genesco's implied volatility exposes the market's sentiment of Genesco stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Genesco's 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 Genesco stock will not fluctuate a lot when Genesco's options are near their expiration.
Our Final Take On Genesco
Whereas other companies in the apparel retail industry are either recovering or due for a correction, Genesco may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor trade any shares of Genesco at this time. The Genesco 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 Genesco.
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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 Genesco. Please refer to our
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