Precision Story

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PDS -- USA Stock  

USD 23.13  0.81  3.38%

Precision Drilling is generating 0.8934% of daily returns assuming volatility of 5.0404% on return distribution over 60 days investment horizon. As many investors are getting excited about energy space, it is fair to sum up Precision Drilling. We will go over a few points Precision Drilling retail investors should remember regarding its volatility.
Published over two weeks ago
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Breaking down Precision (NYSE:PDS) volatility
Precision Drilling runs under Energy sector within Oil & Gas Drilling industry. On a scale of 0 to 100, Precision Drilling holds a performance score of 12. The company holds a Beta of -45.7035, which implies a somewhat significant risk relative to the market. Let's try to break down what Precision's beta means in this case. As returns on the market increase, returns on owning Precision Drilling are expected to decrease by larger amounts. On the other hand, during market turmoil, Precision Drilling is expected to outperform it. Although it is vital to follow Precision Drilling current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-seven technical indicators for Precision Drilling, which you can use to evaluate the performance of the company. Please employ Precision Drilling downside variance, and the relationship between the sortino ratio and accumulation distribution to make a quick decision on whether Precision Drilling historical price patterns will revert.
Volatility is a rate at which the price of Precision Drilling or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Precision Drilling may increase or decrease. In other words, similar to Precision's beta indicator, it measures the risk of Precision Drilling and helps estimate the fluctuations that may happen in a short period of time. So if prices of Precision Drilling fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Precision Drilling's Liquidity

Precision Drilling financial leverage refers to using borrowed capital as a funding source to finance Precision Drilling Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Precision Drilling 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 Precision Drilling'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 Precision Drilling, but it might be worth checking our own buy vs. sell analysis

Breaking down the case for Precision Drilling

The entity reported the last year's revenue of 1.1 B. Reported Net Loss for the year was (107.46 M) with profit before taxes, overhead, and interest of 502.35 M.

Will Precision Drilling continue to go crazy?

Precision Drilling latest kurtosis advances over 65.94. Precision Drilling is displaying above-average volatility over the selected time horizon. Investors should scrutinize Precision Drilling independently to ensure intended market timing strategies are aligned with expectations about Precision Drilling volatility.

Our Final Perspective on Precision Drilling

While some companies in the oil & gas drilling industry are either recovering or due for a correction, Precision Drilling may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 10th of February 2021, we believe that at this point, Precision Drilling is slightly risky with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our primary 30 days buy vs. sell advice on the enterprise is Strong Sell.

About Contributor

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 Achuva Shats do not own shares of Precision Drilling Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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