Netscout Stock Story

NTCT

Stock

USD 33.89 0.23 0.68%

Macroaxis Story

This post will review Netscout Systems. We will evaluate why recent Netscout Systems price moves suggest a bounce in June. In this post, I will also go over a few different drivers affecting Netscout Systems' products and services, and explain how it may impact Netscout Systems private investors.

Published over three months ago

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Here is why Netscout Systems (NASDAQ:NTCT) can still attract private investors

Our trade recommendations module can be used to complement Netscout Systems advice provided by average analyst sentiment. It analyzes the firm's potential to grow using fundamental, technical, data market data available at the time.

How important is Netscout Systems's Liquidity

Netscout Systems financial leverage refers to using borrowed capital as a funding source to finance Netscout Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Netscout Systems 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. Please check the breakdown between Netscout Systems's total debt and its cash.

How does Netscout utilize its cash?

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

Netscout Systems Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Netscout Systems reported Net Cash Flow from Operations of 296.01 Million in 2021

Is Netscout Systems valued wisely by the market?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Netscout Systems has an asset utilization ratio of 614.95 percent. This implies that the company is making $6.15 for each dollar of assets. An increasing asset utilization means that Netscout Systems is more efficient with each dollar of assets it utilizes for everyday operations.

Netscout is expecting lower volatility in June

Coefficient of variation is down to 383683.0. It may call for a possible volatility drop. Netscout Systems has relatively low volatility with skewness of 0.12 and kurtosis of -0.43. However, we advise all investors to independently investigate Netscout Systems to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Netscout Systems' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Netscout Systems' 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.

Netscout Systems Implied Volatility

Netscout Systems' implied volatility exposes the market's sentiment of Netscout Systems stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Netscout Systems' 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 Netscout Systems stock will not fluctuate a lot when Netscout Systems' options are near their expiration.

The Bottom Line

Whereas many of the other players within the software—infrastructure industry are still a little expensive, even after the recent corrections, Netscout Systems may offer a potential longer-term growth to private investors. To conclude, as of the 5th of May 2022, our concluding 90 days buy vs. sell advice on the firm is Strong Hold. We believe Netscout Systems is currently undervalued with very small probability of distress for the next two years.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Netscout Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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