Should I shadow Scholastic (USA Stocks:SCHL) stakeholders?

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Raphi Shpitalnik .  Story
SCHL Stock  USD 45.19  0.23  0.51%   
Raphi Shpitalnik
By Raphi Shpitalnik
Macroaxis Story
While some traders are getting carried away by overanalyzing media space, it is reasonable to summarize Scholastic against current market trends. As we have suggested previously, Scholastic is beginning its pull down as stakeholders shift to be more bearish due to the increased sector volatility. Scholastic follows the market closely. The company returns are highly related to returns on the market. As market weaves, the company is expected to follow. Steady technical indicators of the company may denote signs of medium-term price drift for stakeholders. Scholastic is scheduled to announce its earnings today.
Published over a month ago
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The company's average rating is Hold from 1 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 Scholastic market sentiment investors' perception of the future value of Scholastic. Let us look at a few aspects of Scholastic technical analysis. About 88.0% of the company shares are owned by institutional investors. Scholastic has price-to-book ratio of 1.1. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity last dividend was issued on the 28th of October 2022. The firm had 2:1 split on the 17th of January 2001.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Scholastic. In general, we focus on analyzing Scholastic stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Scholastic'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 Scholastic's intrinsic value. In addition to deriving basic predictive indicators for Scholastic, we also check how macroeconomic factors affect Scholastic 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, frequently view the market will even out over time. This tendency of Scholastic's 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 Scholastic 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 Scholastic. Your research has to be compared to or analyzed against Scholastic's peers to derive any actionable benefits. When done correctly, Scholastic'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 Scholastic.

How important is Scholastic's Liquidity

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

How does Scholastic utilize its cash?

To perform a cash flow analysis of Scholastic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Scholastic is receiving and how much cash it distributes out in a given period. The Scholastic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Scholastic Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 221.26 Million

What is the case for Scholastic Investors

Scholastic has a beta of 0.8759. Let's try to break down what Scholastic's beta means in this case. Scholastic returns are very sensitive to returns on the market. As the market goes up or down, Scholastic is expected to follow. The beta indicator helps investors understand whether Scholastic 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 Scholastic deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity reported the previous year's revenue of 1.64 B. Net Income was 80.9 M with profit before overhead, payroll, taxes, and interest of 877.4 M.

Our Scholastic analysis denotes possible reversion in January

New jensen alpha indicator falls down to -0.36. Possible price surge? Scholastic exhibits very low volatility with skewness of -1.65 and kurtosis of 11.08. However, we advise investors to further study Scholastic 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 Scholastic's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Scholastic's 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 Final Take On Scholastic

While other entities in the publishing industry are either recovering or due for a correction, Scholastic may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor exit any shares of Scholastic at this time. The Scholastic risk-reward trade off is not appealing enough to do any trading. 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 Scholastic.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Scholastic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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