What are the projections for Patterson Companies (USA Stocks:PDCO) to recover in April 2023?
 | By Ellen Johnson | Macroaxis Story |
Patterson Companies Operating Margin is very stable at the moment as compared to the past year. Patterson Companies reported last year Operating Margin of 2.78. As of 2nd of March 2023, Return on Investment is likely to grow to 12.11, while Net Income Per Employee is likely to drop about 26.4 K. The fundamental rationale for this short perspective is to break down our forecasting of Patterson for insiders. We will try to forecast Patterson Companies outlook for April.
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Reviewed by Michael Smolkin
The company has a beta of 1.1187. Let's try to break down what Patterson's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Patterson Companies will likely underperform. The beta indicator helps investors understand whether Patterson Companies 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 Patterson deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Patterson Companies. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Patterson Companies
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Patterson Companies' 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 important is Patterson Companies's Liquidity
Patterson Companies financial leverage refers to using borrowed capital as a funding source to finance Patterson Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Patterson Companies 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 Patterson Companies' 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 Patterson Companies' 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 Patterson Companies's total debt and its cash.
Patterson Companies Gross Profit
Patterson Companies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Patterson Companies 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 Patterson Companies Gross Profit growth over the last 10 years. Please check Patterson Companies' gross profit and other fundamental indicators for more details.
Is Patterson Companies valued appropriately by the market?
Patterson Companies exhibits very low volatility with skewness of -0.4 and kurtosis of -0.31. However, we advise investors to further study Patterson Companies technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Patterson Companies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Patterson Companies' 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.
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