Will Korn Ferry retail investors stop to trade in December?

While some planning is required to successfully invest in stocks, sometimes taking bold action is just as important. Let's try to break down why this may be the case with Korn Ferry. We will look into a few reasons why it is still possible for the company to generate above-average margins and positive cash flow. On the 22nd of November the company is traded for 38.25. Korn Ferry has historical hype elasticity of -0.06. The entity is forecasted to decline in value after the next press release, with the price expected to drop to 38.19. The average volatility of headline impact on Korn Ferry stock price is huge, making predictions on the news or social media along less reliable. The price depreciation on the next news is expected to be -0.16%, whereas the daily expected return is now at 0.36 percent. Considering the 30-days investment horizon, the next forecasted announcement will be in about 10 days.
Published over a year ago
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Reviewed by Michael Smolkin

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Korn Ferry has an asset utilization ratio of 94.28 percent. This suggests that the company is making $0.94 for each dollar of assets. An increasing asset utilization means that Korn Ferry is more efficient with each dollar of assets it utilizes for everyday operations. The company has Net Profit Margin of 1.74 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 10.73 %, which entails that for every 100 dollars of revenue, it generated 0.11 of operating income.
The successful prediction of Korn Ferry stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Korn Ferry, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Korn Ferry based on Korn Ferry hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Korn Ferry's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Korn Ferry's related companies.

Use Technical Analysis to project Korn expected Price

Korn Ferry technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Korn Ferry technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Korn Ferry trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

Korn Ferry Gross Profit

Korn Ferry Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Korn Ferry 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 Korn Ferry Gross Profit growth over the last 10 years. Please check Korn Ferry's gross profit and other fundamental indicators for more details.

What is driving Korn Ferry Investor Appetite?

This firm reported the last year's revenue of 1.79 B. Total Income to common stockholders was 30.32 M with profit before taxes, overhead, and interest of 541.72 M.

Cost of Revenue Breakdown

Korn Ferry Cost of Revenue yearly trend continues to be fairly stable with very little volatility. Cost of Revenue will likely drop to about 120.8 M in 2020. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Korn Ferry Cost of Revenue is fairly stable at the moment as compared to the past year. Korn Ferry reported Cost of Revenue of 130.48 Million in 2019
2013
2014
2015
2016
2017
2018
2019
2020
201375.17 Million
201477.61 Million
2015114.43 Million
2016127.63 Million
2017125.96 Million
2018123.32 Million
2019130.48 Million
2020120.76 Million

Another small slide for Korn Ferry

The expected short fall is down to -2.11 as of today. As of the 22nd of November, Korn Ferry secures the Mean Deviation of 1.72, risk adjusted performance of 0.181, and Downside Deviation of 1.66. Korn Ferry technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Korn Ferry, which can be compared to its peers in the industry. Please verify Korn Ferry variance and potential upside to decide if Korn Ferry is priced some-what accurately, providing market reflects its recent price of 38.25 per share. Given that Korn Ferry has jensen alpha of 0.361, we recommend you to check Korn Ferry's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Korn Ferry

While many of the other players under the staffing & employment services industry are still a bit expensive, Korn Ferry may offer a potential longer-term growth to investors. To conclude, as of the 22nd of November 2020, we believe that at this point, Korn Ferry is very steady with below average probability of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our current 30 days buy-or-sell advice on the company is Strong Hold.

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Editorial Staff

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 Korn Ferry. Please refer to our Terms of Use for any information regarding our disclosure principles.

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