The company secures a Beta (Market Risk) of 1.2705, which conveys a somewhat significant risk relative to the market. Let's try to break down what Legacy'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, Legacy Housing will likely underperform. Even though it is essential to pay attention to
Legacy Housing Corp price patterns, it is always good to be careful when utilizing equity historical
price patterns. Our philosophy towards estimating any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Legacy Housing exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Legacy Housing Corp has an expected return of -0.74%. Please be advised to verify Legacy Housing Corp
information ratio,
value at risk,
kurtosis, as well as the
relationship between the
sortino ratio and
semi variance to decide if
Legacy Housing Corp performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Legacy Housing Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Legacy Housing
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Legacy Housing'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 Legacy Housing. Your research has to be compared to or analyzed against Legacy Housing's peers to derive any actionable benefits. When done correctly, Legacy Housing'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 Legacy Housing Corp.
How important is Legacy Housing's Liquidity
Legacy Housing
financial leverage refers to using borrowed capital as a funding source to finance Legacy Housing Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Legacy Housing 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 Legacy Housing'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 Legacy Housing'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 Legacy Housing's total debt and its cash.
Legacy Housing Gross Profit
Legacy Housing Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Legacy Housing 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 Legacy Housing Gross Profit growth over the last 10 years. Please check Legacy Housing's
gross profit and other
fundamental indicators for more details.
What is driving Legacy Housing Investor Appetite?
Legacy Housing Corp exhibits very low volatility with skewness of -0.21 and kurtosis of -0.5. However, we advise investors to further study Legacy Housing Corp 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 Legacy Housing'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 Legacy Housing'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.
Legacy Housing Implied Volatility
Legacy Housing's implied volatility exposes the market's sentiment of Legacy Housing Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Legacy Housing'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 Legacy Housing stock will not fluctuate a lot when Legacy Housing's options are near their expiration.
Returns Breakdown
| Return on Assets | 0.11 |
| Return on Equity | 0.14 |
| Return Capital | 0.17 |
| Return on Sales | 0.29 |
Legacy Housing has 95 percent odds to go over $14.3 this year
Current market risk adjusted performance indicator falls down to -0.55. Possible price rise? Legacy Housing Corp exhibits very low volatility with skewness of -0.21 and kurtosis of -0.5. However, we advise investors to further study Legacy Housing Corp 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 Legacy Housing'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 Legacy Housing'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.
Legacy Housing Implied Volatility
Legacy Housing's implied volatility exposes the market's sentiment of Legacy Housing Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Legacy Housing'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 Legacy Housing stock will not fluctuate a lot when Legacy Housing's options are near their expiration.
Our Final Takeaway
While other companies in the residential construction industry are either recovering or due for a correction, Legacy Housing may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 13th of June 2022, we believe Legacy Housing is currently
undervalued. It responds to the market and projects
very low probability of distress in the next two years. Our latest 90 days Buy-Hold-Sell recommendation on the company is
Cautious Hold.
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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 Legacy Housing Corp. Please refer to our
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