TravelCenters Story

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TA -- USA Stock  

USD 17.56  1.00  5.39%

If you have been following TravelCenters you may be considering taking in. Let's check if strong technical and fundamental indicators will continue to push the price to build-up for TravelCenters' investors. TravelCenters Of America chance of distress is under 23 percent. Will TravelCenters investors continue to buy in September?
Published over a month ago
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Does TravelCenters (NASDAQ:TA) has strong technical and fundamental indicators based on the current build up?
TravelCenters appears to be slightly risky, given 1 month investment horizon. TravelCenters Of Ame owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.14, which indicates the firm had 0.14% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By inspecting TravelCenters Of Ame technical indicators you can presently evaluate if the expected return of 0.93% is justified by implied risk. Please operate TravelCenters Semi Deviation of 7.2, risk adjusted performance of 0.1983, and Coefficient Of Variation of 855.01 to confirm if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include TravelCenters income statement, its balance sheet, and the statement of cash flows. Potential TravelCenters investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although TravelCenters investors may use each financial statement separately, they are all related. The changes in TravelCenters's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on TravelCenters's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of TravelCenters fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of TravelCenters performance into the future periods or doing a reasonable stock valuation. The intrinsic value of TravelCenters shares is the value that is considered the true value of the share. If the intrinsic value TravelCenters is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares TravelCenters. Please read more on our fundamental analysis page.

Are TravelCenters Earnings Expected to grow?

The future earnings power of TravelCenters involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of TravelCenters factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. TravelCenters stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of TravelCenters expected earnings.

How TravelCenters utilizes its cash?

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

Acquisition by Penkar Rajan of 3000 shares of TravelCenters subject to Rule 16b-3

Legal trades by TravelCenters insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
TravelCenters Of America insider trading alert for grant of common stock by Penkar Rajan, the corporate stakeholder, on 22nd of May 2020. This event was filed by Travelcenters Of America with SEC on 2020-05-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving TravelCenters Investor Appetite?

The current price build-up of TravelCenters created some momentum for investors as it was traded today as low as 13.98 and as high as 14.75 per share. The company management teams may have good odds in positioning the company resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.48. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the TravelCenters Of Ame partners.

Our perspective of the current TravelCenters build-up

Current expected short fall is at -4.7. As of the 5th of August, TravelCenters has the Semi Deviation of 7.2, risk adjusted performance of 0.1983, and Coefficient Of Variation of 855.01. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of TravelCenters Of Ame, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for TravelCenters Of America, which can be compared to its competition. Please validate TravelCenters Of Ame treynor ratio, and the relationship between the standard deviation and downside variance to decide if TravelCenters is priced more or less accurately, providing market reflects its prevalent price of 14.62 per share. Given that TravelCenters Of Ame has jensen alpha of 0.7187, we advise you to double-check TravelCenters Of America's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on TravelCenters

Whereas some other firms under the specialty retail industry are still a bit expensive, TravelCenters may offer a potential longer-term growth to investors. To conclude, as of the 5th of August 2020, our analysis shows that TravelCenters slowly supersedes the market. The company is overvalued and projects low odds of distress for the next 2 years. Our up-to-date 30 days buy-or-sell advice on the company is Sell.

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 TravelCenters Of America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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