Is Lincoln (NASDAQ:LINC) outlook still optimistic?

LINC Stock  USD 6.58  0.09  1.39%   
With so much uncertainty about the consumer defensive space, it is fair to go over Lincoln Educational against current market trends. As expected, Lincoln Educational is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on the market and returns on Lincoln Educational appear slightly correlated for the last few months. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of Lincoln. Lincoln Educational is scheduled to announce its earnings today.
Published over two months ago
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The company's average rating is Buy from 3 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 Lincoln Educational market sentiment investors' perception of the future value of Lincoln. Let us look at a few aspects of Lincoln technical analysis. About 64.0% of the company shares are owned by institutional investors. Lincoln Educational has price-to-book ratio of 1.27. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 1.03. The firm last dividend was issued on the 11th of December 2014.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Lincoln Educational Services. In general, we focus on analyzing Lincoln Educational stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Lincoln Educational'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 Lincoln Educational's intrinsic value. In addition to deriving basic predictive indicators for Lincoln Educational, we also check how macroeconomic factors affect Lincoln Educational 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, frequently view the market will even out over time. This tendency of Lincoln Educational'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 use the tools below to analyze the current value of Lincoln Educational 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 Lincoln Educational. Your research has to be compared to or analyzed against Lincoln Educational's peers to derive any actionable benefits. When done correctly, Lincoln Educational'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 Lincoln Educational.

How does Lincoln Stands against Peers?

Analyzing Lincoln Educational competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Lincoln Educational across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Lincoln Educational Competition Details

How does Lincoln utilize its cash?

To perform a cash flow analysis of Lincoln Educational, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lincoln Educational is receiving and how much cash it distributes out in a given period. The Lincoln Educational cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Acquisition by Rose Carlton of 9009 shares of Lincoln Educational subject to Rule 16b-3

Legal trades by Lincoln Educational insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lincoln insider trading alert for grant of common stock by Rose Carlton, the corporate stakeholder, on 3rd of June 2022. This event was filed by Lincoln Educational Servi with SEC on 2022-06-03. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Lincoln Educational has a beta of 0.6037. Let's try to break down what Lincoln's beta means in this case. Lincoln Educational returns are very sensitive to returns on the market. As the market goes up or down, Lincoln Educational is expected to follow. The beta indicator helps investors understand whether Lincoln Educational 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 Lincoln 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 entity reported the previous year's revenue of 341.57 M. Net Income was 21.17 M with profit before overhead, payroll, taxes, and interest of 196.41 M.

Over 3 percent rise for Lincoln Educational. What does it mean for investors?

Current skewness is at 0.62. Lincoln Educational exhibits very low volatility with skewness of 0.62 and kurtosis of 1.49. However, we advise investors to further study Lincoln Educational technical indicators to ensure that 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 Lincoln Educational's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lincoln Educational'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.

The Bottom Line

Whereas some other entities within the education & training services industry are still a little expensive, even after the recent corrections, Lincoln Educational may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor sell any shares of Lincoln Educational at this time. The Lincoln Educational risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lincoln Educational.

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 Lincoln Educational Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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