Overseas Shipholding's average rating is Hold from 1 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 Overseas Shipholding market sentiment investors' perception of the future value of Overseas. Let us look at a few aspects of Overseas technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Overseas Shipholding Group. In general, sophisticated investors focus on analyzing Overseas Shipholding stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Overseas Shipholding'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
Overseas Shipholding's intrinsic value. In addition to deriving basic predictive indicators for Overseas Shipholding, many experienced traders also check how macroeconomic factors affect Overseas Shipholding 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 Overseas Shipholding'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 note, it is not enough to conduct a financial or market analysis of a single entity such as Overseas Shipholding. Your research has to be compared to or analyzed against Overseas Shipholding's peers to derive any actionable benefits. When done correctly, Overseas Shipholding's 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 Overseas Shipholding.
How important is Overseas Shipholding's Liquidity
Overseas Shipholding
financial leverage refers to using borrowed capital as a funding source to finance Overseas Shipholding Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Overseas Shipholding 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 Overseas Shipholding's 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 Overseas Shipholding's 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 Overseas Shipholding's total debt and its cash.
Overseas Shipholding Gross Profit
Overseas Shipholding Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Overseas Shipholding 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 Overseas Shipholding Gross Profit growth over the last 10 years. Please check Overseas Shipholding's
gross profit and other
fundamental indicators for more details.
Closer look at Overseas Shipholding Mean Deviation
Overseas Shipholding Group has current Mean Deviation of 1.87. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 1.87 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Overseas Shipholding |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Overseas Shipholding Mean Deviation to its closest peers:
| OSG | 1.8670486336088155 |
| ENB | 0.89 |
| EPD | 1.01 |
| WMB | 1.27 |
| LNG | 1.98 |
Will Overseas price dip impact its balance sheet?
Semi deviation is down to 2.06. It may indicate a possible volatility dip. Overseas Shipholding Group currently demonstrates below-average downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.34. However, we advise investors to further question Overseas Shipholding Group 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 Overseas Shipholding'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 Overseas Shipholding'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.
Overseas Shipholding Implied Volatility
Overseas Shipholding's implied volatility exposes the market's sentiment of Overseas Shipholding Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Overseas Shipholding'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 Overseas Shipholding stock will not fluctuate a lot when Overseas Shipholding's options are near their expiration.
Our Conclusion on Overseas Shipholding
Although some other entities under the oil & gas midstream industry are still a bit expensive, Overseas Shipholding may offer a potential longer-term growth to shareholders. All things considered, as of the 8th of May 2022, our analysis shows that Overseas Shipholding slowly supersedes the market. The firm is
undervalued and projects
below average chance of bankruptcy for the next 2 years. Our ongoing 90 days buy-sell recommendation on the firm is
Buy.
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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 Overseas Shipholding Group. Please refer to our
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