The company's average rating is Buy from 2 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 Hon Industries market sentiment investors' perception of the future value of Hon Industries. Let us look at a few aspects of Hon Industries technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of HNI Corp. In general, sophisticated investors focus on analyzing HNI Corp stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build HNI Corp'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
HNI Corp's intrinsic value. In addition to deriving basic predictive indicators for HNI Corp, many experienced traders also check how macroeconomic factors affect HNI Corp 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 HNI Corp'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 HNI Corp. Your research has to be compared to or analyzed against HNI Corp's peers to derive any actionable benefits. When done correctly, HNI Corp'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 HNI Corp.
How important is HNI Corp's Liquidity
HNI Corp
financial leverage refers to using borrowed capital as a funding source to finance HNI Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HNI Corp 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. Financial leverage can amplify the potential profits to HNI Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of HNI Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between HNI Corp's total debt and its cash.
HNI Corp Gross Profit
HNI Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HNI Corp 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 HNI Corp Gross Profit growth over the last 10 years. Please check HNI Corp's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Hon Industries has a beta of -0.2804. Let's try to break down what Hon Industries's beta means in this case. Hon Industries returns are very sensitive to returns on the market. As the market goes up or down, Hon Industries is expected to follow. The beta indicator helps investors understand whether Hon Industries 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 Hon Industries 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 current indifference towards the small price fluctuations of Hon Industries may raise some interest from stockholders. The stock closed today at a share price of
37.66 on
444,162 in trading volume. The company executives did not add any value to Hon Industries investors in
February. However, most investors can still diversify their portfolios with Hon Industries to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.58. The current volatility is consistent with the ongoing market swings in
February 2021 as well as with Hon Industries unsystematic, company-specific events.
Hon Industries implied volatility may change after the rise
Current maximum drawdown is at 12.87. Hon Industries exhibits very low volatility with skewness of 0.65 and kurtosis of 0.7. However, we advise investors to further study Hon Industries 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 Hon Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hon Industries' 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.
The Current Takeaway on Hon Industries Investment
When is the right time to buy or sell Hon Industries? Buying stocks such as Hon Industries isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 1st of March 2021, we believe that Hon Industries is currently
overvalued with
low probability of distress in the next two years. Our final 30 days recommendation on the company is
Sell.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of HNI Corp. Please refer to our
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