What are the projections for Patterson Companies (USA Stocks:PDCO) to recover in April 2023?

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Ellen Johnson .  Story
PDCO Stock  USD 26.43  0.20  0.75%   
Ellen Johnson
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.
Published over three weeks ago
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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 or bond 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, frequently view 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. Please use the tools below to analyze the current value of Patterson Companies in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Patterson Companies. Your research has to be compared to or analyzed against Patterson Companies' peers to derive any actionable benefits. When done correctly, Patterson Companies' 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 Patterson Companies.

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. Please check the breakdown between Patterson Companies's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Patterson Companies, but it might be worth checking our own buy vs. sell analysis

Acquisition by Donald Zurbay of 669 shares of Patterson Companies subject to Rule 16b-3

Legal trades by Patterson Companies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Patterson insider trading alert for grant of common stock by Donald Zurbay, President CEO, on 6th of December 2022. This event was filed by Patterson Companies Inc with SEC on 2022-12-06. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

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.

Shares Breakdown


Possible April throwback of Patterson?

Recent Total Risk Alpha is up to 0.01. Price may decline again. 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.

Our Bottom Line On Patterson Companies

Although many other companies in the medical distribution industry are either recovering or due for a correction, Patterson may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 2nd of March 2023, we believe that at this point, Patterson Companies is undervalued with low odds of financial distress within the next 2 years. Our primary buy vs. sell advice on the firm is Strong Hold.

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 Patterson Companies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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