This firm's average rating is Buy from 5 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 RBC Bearings market sentiment investors' perception of the future value of RBC Bearings. Let us look at a few aspects of RBC Bearings technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of RBC Bearings Incorporated. In general, sophisticated investors focus on analyzing RBC Bearings stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build RBC Bearings'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 RBC Bearings's intrinsic value. In addition to deriving basic predictive indicators for RBC Bearings, many experienced traders also check how macroeconomic factors affect RBC Bearings 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, anticipate that the market will even out over time. This tendency of RBC Bearings' 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 note, it is not enough to conduct a financial or market analysis of a single entity such as RBC Bearings. Your research has to be compared to or analyzed against RBC Bearings' peers to derive any actionable benefits. When done correctly, RBC Bearings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in RBC Bearings rporated.
How important is RBC Bearings's Liquidity
RBC Bearings
financial leverage refers to using borrowed capital as a funding source to finance RBC Bearings Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RBC Bearings 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 RBC Bearings' 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 RBC Bearings' 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 RBC Bearings's total debt and its cash.
An Additional Perspective On RBC Bearings rporated
The company has a beta of 1.2847. Let's try to break down what RBC Bearings'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, RBC Bearings will likely underperform. The beta indicator helps investors understand whether RBC Bearings 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 RBC Bearings deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. RBC Bearings Incorp reported the previous year's revenue of 744.35
M. Net Income was 51.56
M with profit before overhead, payroll, taxes, and interest of 237.98
M.
How will RBC Bearings stakeholders react to the next pull down?
New potential upside is at 3.7. RBC Bearings Incorp exhibits very low volatility with skewness of 0.05 and kurtosis of -0.41. However, we advise investors to further study RBC Bearings Incorp technical indicators to make sure 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 RBC Bearings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact RBC Bearings' 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.
RBC Bearings Implied Volatility
RBC Bearings' implied volatility exposes the market's sentiment of RBC Bearings Incorp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if RBC Bearings' 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 RBC Bearings stock will not fluctuate a lot when RBC Bearings' options are near their expiration.
Our Conclusion on RBC Bearings
While some other companies in the tools & accessories industry are either recovering or due for a correction, RBC Bearings may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of RBC Bearings nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to RBC Bearings.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of RBC Bearings Incorporated. Please refer to our
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