LyondellBasell Story

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LYB -- USA Stock  

USD 103.09  1.32  1.26%

LyondellBasell Industries is scheduled to announce its earnings today. The next earnings report is expected on the 7th of May 2021. As many millenniums are getting excited about basic materials space, it is only fair to go over the feasibility of shorting LyondellBasell Industries NV. What exactly are LyondellBasell Industries shareholders getting in March?
Published over three weeks ago
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Would you shadow LyondellBasell Industries analysts?
On a scale of 0 to 100, LyondellBasell Industries holds a performance score of 8. The company secures a Beta (Market Risk) of 0.1957, which conveys not very significant fluctuations relative to the market. Let's try to break down what LyondellBasell's beta means in this case. As returns on the market increase, LyondellBasell Industries returns are expected to increase less than the market. However, during the bear market, the loss on holding LyondellBasell Industries will be expected to be smaller as well. Although it is vital to follow LyondellBasell Industries price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing LyondellBasell Industries technical indicators, you can presently evaluate if the expected return of 0.32% will be sustainable into the future. Please exercises LyondellBasell Industries NV downside variance, and the relationship between the treynor ratio and kurtosis to make a quick decision on whether LyondellBasell Industries current price movements will revert.
What is the right price you would pay to acquire a share of LyondellBasell Industries? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
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What is happening with LyondellBasell Industries NV this year

Annual and quarterly reports issued by LyondellBasell Industries NV are formal financial statements that are published yearly and quarterly and sent to LyondellBasell stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as LyondellBasell Industries often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How LyondellBasell utilizes its cash?

To perform a cash flow analysis of LyondellBasell Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash LyondellBasell Industries is receiving and how much cash it distributes out in a given period. The LyondellBasell Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
LyondellBasell Industries Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 5.71 Billion

LyondellBasell Industries exotic insider transaction detected

Legal trades by LyondellBasell Industries 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:
LyondellBasell insider trading alert for general transaction of ordinary shares by Ai Investments Holdings Llc, the corporate stakeholder, on 26th of February 2021. This event was filed by Lyondellbasell Industries with SEC on 2021-02-26. 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.

Is LyondellBasell Industries valued fairly by the market?

Earning per share calculations of the firm is based on official Zacks consensus of 5 analysts regarding LyondellBasell Industries' future annual earnings. Given the historical accuracy of 94.63%, the future earnings per share of the company is estimated to be 4.3743 with the lowest and highest values of 1.58 and 5.1, respectively. Please note that this consensus of annual earnings estimates for LyondellBasell Industries is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is LyondellBasell a risky opportunity?

Let's check the volatility. LyondellBasell is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind LyondellBasell (NYSE:LYB) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a LyondellBasell Industries stock makes you a part-owner of that company.

LyondellBasell Industries NV Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering LyondellBasell Industries. The LyondellBasell consensus assessment is calculated by taking the average estimates from all of the analysts covering LyondellBasell Industries

Strong Buy
5
Hold
10
Strong Sell
1
Strong Buy531.25
Buy00.0
Hold1062.5
Sell00.0
Strong Sell16.25

Our take on LyondellBasell Industries small slip

Current semi deviation is at 2.42. LyondellBasell Industries NV currently demonstrates below-verage downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.19. However, we do advice investors to further question LyondellBasell Industries NV expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on LyondellBasell Industries Investment

Whereas few other entities under the specialty chemicals industry are still a bit expensive, LyondellBasell Industries may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility 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 LyondellBasell Industries.

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 Gabriel Shpitalnik do not own shares of LyondellBasell Industries NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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