Sierra Story

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SWIR -- USA Stock  

USD 10.21  0.31  3.13%

Sierra Wireless is scheduled to announce its earnings today. The stock is currently experiencing an active downward rally. As some millenniums are still trying to avoid technology space, I will try to sum up Sierra Wireless a little further in order to understand its potential as a viable investment. We will evaluate why recent Sierra Wireless price moves suggest a bounce in September.
Published over a month ago
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Will analysts have more confidence in Sierra Wireless (NASDAQ:SWIR) September?
Sierra Wireless currently holds 53.17 M in liabilities with Debt to Equity (D/E) ratio of 0.15, which may suggest Sierra Wireless is not taking enough advantage from borrowing.
What is the right price you would pay to acquire a share of Sierra Wireless? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Sierra Wireless this year

Annual and quarterly reports issued by Sierra Wireless are formal financial statements that are published yearly and quarterly and sent to Sierra stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Sierra Wireless often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Sierra utilizes its cash?

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

Is Sierra a risky opportunity?

Let's check the volatility. Sierra is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Sierra (NASDAQ:SWIR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Sierra Wireless stock makes you a part-owner of that company.

Sierra Wireless Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Sierra Wireless. The Sierra consensus assessment is calculated by taking the average estimates from all of the analysts covering Sierra Wireless

Buy
1
Hold
4
Strong Buy00.0
Buy120.0
Hold480.0
Sell00.0
Strong Sell00.0

Another setback for Sierra Wireless retail investors

The treynor ratio is down to 0.57 as of today. Sierra Wireless shows above-average downside volatility for the selected time horizon. We advise investors to inspect Sierra Wireless further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Sierra Wireless future alpha.

Our Conclusion on Sierra Wireless

While some other firms in the communication equipment industry are either recovering or due for a correction, Sierra Wireless may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of Sierra or increase your existing holdings in the Stock as it seems the potential growth 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 Sierra Wireless.

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 Raphi Shpitalnik do not own shares of Sierra Wireless. Please refer to our Terms of Use for any information regarding our disclosure principles.

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