The company's average rating is Buy from 4 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 Home Bancshares market sentiment investors' perception of the future value of Home Bancshares. Let us look at a few aspects of Home Bancshares technical analysis. The company has Profit Margin (PM) of
36.84 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Home BancShares. In general, sophisticated investors focus on analyzing Home BancShares stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Home BancShares'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 Home BancShares's intrinsic value. In addition to deriving basic predictive indicators for Home BancShares, many experienced traders also check how macroeconomic factors affect Home BancShares 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 Home BancShares' 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 Home BancShares. Your research has to be compared to or analyzed against Home BancShares' peers to derive any actionable benefits. When done correctly, Home BancShares' 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 Home BancShares.
How important is Home BancShares's Liquidity
Home BancShares
financial leverage refers to using borrowed capital as a funding source to finance Home BancShares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Home BancShares 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 Home BancShares' 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 Home BancShares' 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 Home BancShares's total debt and its cash.
Home BancShares Gross Profit
Home BancShares Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Home BancShares 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 Home BancShares Gross Profit growth over the last 10 years. Please check Home BancShares'
gross profit and other
fundamental indicators for more details.
Closer look at Home Bancshares Variance
Home Bancshares has current Variance of 4.15. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2 N |
| = | 4.15 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Home Bancshares Variance to its closest peers:
| HOMB | 4.150538258524374 |
| AX | 4.7 |
| BY | 5.21 |
| DB | 4.74 |
| KB | 4.25 |
Home Bancshares has 85 percent chance to finish below $27 next week
Coefficient of variation is down to 479.55. It may suggest a possible volatility slip. Home Bancshares has relatively low volatility with skewness of 0.0 and kurtosis of -0.15. However, we advise all investors to independently investigate Home Bancshares to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Home Bancshares' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Home Bancshares' 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 Final Take On Home Bancshares
Whereas some companies in the banks—regional industry are either recovering or due for a correction, Home Bancshares may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 15th of April 2021, our present 30 days Buy-Hold-Sell recommendation on the company is
Strong Buy. We believe Home Bancshares is
fairly valued with
below average chance of financial distress for the next two years.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Home BancShares. Please refer to our
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