Overseas Stock Story

OSG
 Stock
  

USD 2.76  0.05  1.84%   

As many millenniums are trying to avoid energy space, it makes sense to digest Overseas Shipholding Group a little further and try to understand its current market patterns. As we have suggested previously, Overseas Shipholding is beginning its dip as shareholders shift to be more bearish due to the increased sector volatility. Overseas Shipholding slowly supersedes the market. The returns on the market and returns on Overseas Shipholding appear slightly-related for the last few months. Sound basic indicators of the firm may indicate signs of shorter-term price drift for shareholders. Overseas Shipholding is scheduled to announce its earnings tomorrow.
Published over three months ago
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Will Overseas Shipholding (NYSE:OSG) continue to dip in June?

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 will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Overseas Shipholding Group. In general, we focus on analyzing Overseas Shipholding stock price patterns and their correlations with different microeconomic environment and drivers. We also 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, we 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, frequently view 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 use the tools below to analyze the current value of Overseas Shipholding in the context of predictive analytics.
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 towards 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. Please check the breakdown between Overseas Shipholding's total debt and its cash.

How does Overseas utilize its cash?

To perform a cash flow analysis of Overseas Shipholding, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Overseas Shipholding is receiving and how much cash it distributes out in a given period. The Overseas Shipholding cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Overseas Shipholding 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 (11.83 Million)

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) 
 = 
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
ENB
EPD
WMB
LNG
OSG1.8670486336088155
ENB0.89
EPD1.01
WMB1.27
LNG1.98

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.

Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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