Centurylink is OVERVALUED at 11.12 per share with modest projections ahead. Over 80.0% of Centurylink shares are owned by
institutional investors. Institutional ownership of Centurylink refers to the amount of Centurylink equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Centurylink, including its current
ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Lumen Technologies. 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 Lumen Technologies
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Lumen Technologies' 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 Lumen Technologies. Your research has to be compared to or analyzed against Lumen Technologies' peers to derive any actionable benefits. When done correctly, Lumen Technologies' 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 Lumen Technologies.
Watch out for price decline
Please consider monitoring Lumen Technologies on a daily basis if you are holding a position in it. Lumen Technologies is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Lumen Technologies stock to be traded above the $1 level to remain listed. If Lumen Technologies stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Lumen Technologies's Liquidity
Lumen Technologies
financial leverage refers to using borrowed capital as a funding source to finance Lumen Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lumen Technologies 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 Lumen Technologies' 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 Lumen Technologies' 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 Lumen Technologies's total debt and its cash.
Lumen Technologies Gross Profit
Lumen Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lumen Technologies 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 Lumen Technologies Gross Profit growth over the last 10 years. Please check Lumen Technologies'
gross profit and other
fundamental indicators for more details.
Breaking it down
Centurylink currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.22. However, we advise investors to further question Centurylink expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Centurylink'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 Centurylink'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.
Centurylink Implied Volatility
Centurylink's implied volatility exposes the market's sentiment of Centurylink stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Centurylink'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 Centurylink stock will not fluctuate a lot when Centurylink's options are near their expiration.
Returns Breakdown
| Return on Assets | 0.0378 |
| Return on Equity | 0.19 |
| Return Capital | 0.0809 |
| Return on Sales | 0.23 |
Another small slide for Centurylink
Latest downside variance is at 6.13.
As of the 11th of June 2022, Centurylink shows the Mean Deviation of 1.63,
risk adjusted performance of 0.0899, and Downside Deviation of 2.48. In respect to
fundamental indicators, the
technical analysis model gives you tools to check existing technical drivers of Centurylink, as well as the relationship between them. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have collected data for nineteen
technical drivers for Centurylink, which can be compared to its rivals. Please confirm
Centurylink standard deviation,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
expected short fall to decide if Centurylink is priced correctly, providing market reflects its regular price of 11.27 per share. Given that Centurylink has
jensen alpha of 0.2192, we suggest you to validate Centurylink's prevailing market performance to make sure the company can sustain itself at a future point.
Our Bottom Line On Centurylink
Whereas some firms within the telecom services industry are still a little expensive, even after the recent corrections, Centurylink may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current Centurylink valuation and our trade advice on Centurylink is due to the recent market swings and your selection of investing horizon. 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 Centurylink.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Lumen Technologies. Please refer to our
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