Sierra Story

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SWIR -- USA Stock  

USD 18.14  0.14  0.77%

While some traders are getting carried away by overanalyzing technology space, it is reasonable to sum up Sierra Wireless against current market trends. As expected, Sierra Wireless is starting to reaffirm its true potential as retail investors are becoming more and more confident in the future outlook. The returns on the market and returns on Sierra Wireless appear slightly correlated to each other for the last few months. The record of invariable basic indicators of the enterprise connotes a short-term price swing for retail investors of Sierra. The stock is currently experiencing an active upward rally.
Published over a month ago
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Will Sierra Wireless (NASDAQ:SWIR) price continue to spike in December?
Sierra Wireless's average rating is Hold 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 Sierra Wireless market sentiment investors' perception of the future value of Sierra. Let us look at a few aspects of Sierra technical analysis. The company has Profit Margin (PM) of (9.88) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (10.8) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.11.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Sierra Wireless. In general, we focus on analyzing Sierra Wireless stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Sierra Wireless'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 Sierra Wireless's intrinsic value. In addition to deriving basic predictive indicators for Sierra Wireless, we also check how macroeconomic factors affect Sierra Wireless 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 Sierra Wireless' 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 Sierra Wireless 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 Sierra Wireless. Your research has to be compared to or analyzed against Sierra Wireless' peers to derive any actionable benefits. When done correctly, Sierra Wireless' 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 Sierra Wireless.

How does Sierra Stands against Peers?

Analyzing Sierra Wireless competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Sierra Wireless across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Sierra Wireless Competition Details

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.

A Deeper Perspective

The entity has a beta of 0.5791. Let's try to break down what Sierra'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, Sierra Wireless will likely underperform. The beta indicator helps investors understand whether Sierra Wireless 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 Sierra 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 latest spike in Sierra Wireless short term price appreciation created some momentum for retail investors as it was traded today as low as 12.0 and as high as 14.8 per share. The company directors and management have successfully maneuvered the company at convenient times to take advantage of all market conditions in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.52. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Sierra Wireless partners.

Will Sierra Wireless growth be sustainable after the spike?

Potential upside is down to 4.34. It may connote a possible volatility fall. Sierra Wireless exhibits very low volatility with skewness of -0.2 and kurtosis of 0.54. However, we advise investors to further study Sierra Wireless technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

While other entities under the communication equipment industry are still a bit expensive, Sierra Wireless may offer a potential longer-term growth to retail investors. Taking everything into account, as of the 25th of November 2020, we believe Sierra Wireless is currently fairly valued. It follows the market closely and projects low probability of distress in the next two years. Our final 30 days buy-sell recommendation on the enterprise is Cautious Hold.

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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