ITT Story

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ITT -- USA Stock  

USD 84.81  1.53  1.77%

It appears ITT may not recover as fast as we have hopped for as its price went down 2.86% today. This firm current daily volatility is 1.75 percent, with a beta of 1.84 and an alpha of -0.02 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to review ITT Inc based on its technical indicators. I will address the reasons why this entity does not get much respect from private investors under the current market uncertainty.
Published over a week ago
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What does a newest ITT volatility drop mean for private investors?
ITT Inc has roughly 782.3 M in cash with 454.1 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.05. Macroaxis provides unbiased trade recommendations on ITT that should be used to complement current analysts and expert consensus on ITT Inc. Our advice engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in ITT, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding ITT along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of ITT's stock 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 use the tools below to analyze the current value of ITT in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as ITT. Your research has to be compared to or analyzed against ITT's peers to derive any actionable benefits. When done correctly, ITT's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in ITT Inc.

How important is ITT's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for ITT, but it might be worth checking our own buy vs. sell analysis

ITT Correlation with Peers

Investors in ITT can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in ITT Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of ITT and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities ITT is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of ITT for more details

Breaking down the case for ITT

We consider ITT very steady. ITT Inc holds Efficiency (Sharpe) Ratio of 0.0604, which attests that the entity had 0.0604% of return per unit of volatility over the last month. Our outlook to determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for ITT Inc, which you can use to evaluate future volatility of the firm. Please check out ITT risk adjusted performance of 0.089, and Market Risk Adjusted Performance of 0.1122 to validate if the risk estimate we provide is consistent with the expected return of 0.11%.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will ITT price drop impact its balance sheet?

Newest Risk Adjusted Performance is up to 0.09. Price may drop again. ITT Inc has relatively low volatility with skewness of 0.49 and kurtosis of 1.11. However, we advise all investors to independently investigate ITT Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Bottom Line On ITT Inc

Whereas some other firms within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, ITT may offer a potential longer-term growth to private investors. While some before the next earnings call oriented private investors may not share our view, we believe it may not be a good time to buy new shares of ITT.

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 ITT Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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