Sprague Story

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SRLP -- USA Stock  

USD 23.71  0.01  0.0422%

This short post will recap Sprague Resources as a possible investment alternative for your portfolios. We will provide a perspective on Sprague Resources future direction.
Published over a month ago
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Are Sprague (NYSE:SRLP) insiders starting to hold back?
On a scale of 0 to 100, Sprague Resources holds a performance score of 10. The entity has a beta of 0.2094, which indicates not very significant fluctuations relative to the market. Let's try to break down what Sprague's beta means in this case. As returns on the market increase, Sprague Resources returns are expected to increase less than the market. However, during the bear market, the loss on holding Sprague Resources will be expected to be smaller as well. Although it is vital to follow Sprague Resources current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring 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. By inspecting Sprague Resources technical indicators, you can presently evaluate if the expected return of 0.31% will be sustainable into the future. Please operates Sprague Resources potential upside, as well as the relationship between the kurtosis and day typical price to make a quick decision on whether Sprague Resources existing price patterns will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Sprague Resources. Regardless of method or technology, to accurately forecast the stock 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 Sprague Resources

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Sprague Resources' 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 Sprague Resources 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 Sprague Resources. Your research has to be compared to or analyzed against Sprague Resources' peers to derive any actionable benefits. When done correctly, Sprague Resources' 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 Sprague Resources.

How important is Sprague Resources's Liquidity

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

How Sprague utilizes its cash?

To perform a cash flow analysis of Sprague Resources, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sprague Resources is receiving and how much cash it distributes out in a given period. The Sprague Resources cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

An Additional Perspective On Sprague Resources

Sprague Resources LP currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.34. However, we advise investors to further question Sprague Resources LP expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sprague Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sprague Resources' 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.

Will Sprague Resources continue to go nuts?

Sprague Resources recent total risk alpha upswings over 0.18. Sprague Resources LP currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.34. However, we advise investors to further question Sprague Resources LP expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sprague Resources' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sprague Resources' 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.

The Bottom Line

Although some companies within the oil & gas refining & marketing industry are still a little expensive, even after the recent corrections, Sprague Resources may offer a potential longer-term growth to insiders. In closing, as of the 4th of March 2021, our primary 30 days advice on the firm is Strong Buy. We believe Sprague Resources is currently undervalued with below average probability of bankruptcy 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 Gabriel Shpitalnik do not own shares of Sprague Resources LP. Please refer to our Terms of Use for any information regarding our disclosure principles.

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