Should I shadow Trxade Group (USA Stocks:MEDS) private investors?
 | By Raphi Shpitalnik | Macroaxis Story |
Riding the wave of private investor sentiment can often lead to profitable trading strategies. Trxade Group (NASDAQ: MEDS), a key player in the Consumer Staples Distribution & Retail sector, has been making waves in the market. Despite a net income loss of $3.9M and a net interest income loss of $315.2K, the company's stock has shown resilience. As of the last update on December 12, 2023, the 50-day moving average stood at 6.13, while the 200-day moving average was 6.77. The stock's 52-week high was 19.70, indicating potential for significant upside. Analysts have a strong buy consensus on the stock, with a target price estimated at $18.74, a considerable leap from the naive expected forecast value of $5.43. With a short ratio of 2.33 and only 10.4K shares short the prior month, the short interest seems relatively low. The stock's real value is pegged at $8.71, suggesting that it may be undervalued. Therefore, following the lead of private investors in Trxade Group could indeed be a profitable strategy. While some millennials may be indifferent towards the consumer staples distribution and retail space, it is prudent to evaluate Trxade Group in terms of its current potential. As we have previously suggested, Trxade is beginning to experience a decline as private investors adopt a more bearish stance due to increased sector volatility. Trxade Group's performance closely mirrors the market. The returns on the market and those on Trxade have shown a slight correlation over the past few months. The company's stable fundamental indicators may suggest potential short-term price fluctuations for private investors. Trxade Group is set to announce its earnings today, with the upcoming quarterly report expected on December 18, 2023.
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Reviewed by Rifka Kats
The average rating for Trxade Group, according to one analyst, is a "Strong Buy". Is this consensus based on technical analysis? As we know, technical analysis typically involves the use of price momentum, patterns, and trends derived from historical prices. The goal is to identify signals based on the market sentiment of Trxade investors, which reflects their perception of the future value of Trxade. Let's delve into some aspects of Trxade's technical analysis. Approximately 28.0% of the company's outstanding shares are owned by corporate insiders. Trxade Group reported a loss per share of $5.75. The company's last dividend was issued on February 13, 2020. The firm underwent a 1:15 stock split on June 22, 2023.
Main Ideas
Trxade Group (MEDS) has been a focal point for private investors, with its shares currently trading at $5.55, below the 200-day moving average of 6.77. The stock has shown a Mean Deviation of 3.58 and a Variance of 22.29, indicating a high degree of price volatility. On the financial front, the company reported a loss from continuing operations of 3.9M and an operating income loss of 2.8M. With a negative Jensen Alpha of -0.92 and a total risk alpha of -1.4, the company's risk-adjusted performance has been less than stellar. Therefore, following the lead of private investors in Trxade Group might not be a profitable strategy at this time.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Trxade Group. In general, sophisticated investors focus on analyzing Trxade stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Trxade'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 Trxade's intrinsic value. In addition to deriving basic predictive indicators for Trxade, many experienced traders also check how macroeconomic factors affect Trxade 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, anticipate that the market will even out over time. This tendency of Trxade'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.
How does Trxade Stands against Peers?
Analyzing Trxade 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 Trxade 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 Trxade Competition DetailsIs Trxade valued wisely by the market?
Trxade Group has a beta of 0.668. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Trxade will likely underperform. The beta indicator helps investors understand whether Trxade 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 Trxade 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 11.45 M. Net Loss for the year was (3.91 M) with profit before overhead, payroll, taxes, and interest of 4.58 M.Every cloud has a silver lining, and for Trxade Group (USA Stocks: MEDS), the silver lining might be in the form of private investors. Despite a high probability of bankruptcy at 86.90%, the company has managed to maintain a decent Price to Book ratio of 2.46X and a Price to Sales ratio of 0.81X. The company's shares are currently trading below the Wall Street target price of $6.75, indicating potential upside. However, the company's financial health is a concern, with a net income loss of $3.9M and a negative return on equity of -16.21. The company's debt to equity ratio is relatively low at 0.93%, but the high concentration of shares owned by insiders at 27.71% could be a red flag for potential investors. In conclusion, while private investors may see potential in Trxade Group, the company's financial health and high bankruptcy risk make it a risky investment. .
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