Park Electrochemical Story

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PKE -- USA Stock  

USD 14.29  0.20  1.42%

It looks as if Park Electrochemical will continue to recover much faster as its share price surged up 4.09% today. Park Electrochemical current daily volatility is 2.49 percent, with a beta of 1.42 and an alpha of 0.15 over DOW. While some of us are getting more passionate about park electrochemical corporation, it makes sense to digest Park Electrochemical Corporation in greater detail to make a better estimate of its volatility. We will evaluate why recent Park Electrochemical price moves suggest a bounce in February.
Published over two weeks ago
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Is Park Electrochemical (NYSE:PKE) a good short term trade as volatility ascents?
Park Electrochemical Corporation has roughly 118.69 M in cash with 12.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.82. Our trade recommendations tool can cross-verify current analyst consensus on Park Electrochemical and to analyze the firm potential to grow in the current economic cycle.
Investing in Park Electrochemical, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Park Electrochemical along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Park Electrochemical's stock 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 Park Electrochemical 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 Park Electrochemical. Your research has to be compared to or analyzed against Park Electrochemical's peers to derive any actionable benefits. When done correctly, Park Electrochemical'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 Park Electrochemical.

How important is Park Electrochemical's Liquidity

Park Electrochemical financial leverage refers to using borrowed capital as a funding source to finance Park Electrochemical Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Park Electrochemical 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 Park Electrochemical's total debt and its cash.

How Park Electrochemical utilizes its cash?

To perform a cash flow analysis of Park Electrochemical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Park Electrochemical is receiving and how much cash it distributes out in a given period. The Park Electrochemical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Park Electrochemical Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 13.95 Million

Park Electrochemical Correlation with Peers

Investors in Park Electrochemical can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Park Electrochemical Corporation. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Park Electrochemical and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Park Electrochemical is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Park Electrochemical for more details

Breaking down Park Electrochemical Indicators

Park Electrochemical appears to be not too volatile, given 1 month investment horizon. Park Electrochemical maintains Sharpe Ratio (i.e. Efficiency) of 0.16, which implies the firm had 0.16% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Park Electrochemical, which you can use to evaluate future volatility of the company. Please employ Park Electrochemical Semi Deviation of 1.44, risk adjusted performance of 0.1727, and Coefficient Of Variation of 636.43 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Park Electrochemical implied volatility may change after the surge

The semi deviation is down to 1.44 as of today. Park Electrochemical Corporation has relatively low volatility with skewness of 1.57 and kurtosis of 5.57. However, we advise all investors to independently investigate Park Electrochemical Corporation to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Park Electrochemical

Although some firms within the aerospace & defense industry are still a little expensive, even after the recent corrections, Park Electrochemical may offer a potential longer-term growth to shareholders. To conclude, as of the 7th of January 2021, our actual 30 days advice on the firm is Strong Buy. We believe Park Electrochemical is undervalued with below average odds of financial turmoil for the next two years.

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 Park Electrochemical Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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