TravelCenters Story

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TA -- USA Stock  

USD 33.93  0.79  2.38%

TravelCenters is generating 1.0657% of daily returns and assumes 5.9008% volatility on return distribution over the 60 days horizon. While some of us are excited about consumer cyclical space, it makes sense to go over TravelCenters in greater detail to make a better estimate of its risk and reward. We will evaluate if the latest TravelCenters price volatility suggests a bounce in December. TravelCenters high volatility, while potentially profitable, can lead to more considerable losses for your portfolios.
Published over a month ago
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TravelCenters (NASDAQ:TA) high volatility trend continues
The company is active under Consumer Cyclical sector as part of Specialty Retail industry. TravelCenters holds a performance score of 12 on a scale of zero to a hundred. The entity has a beta of 0.295, which indicates not very significant fluctuations relative to the market. Let's try to break down what TravelCenters's beta means in this case. As returns on the market increase, TravelCenters returns are expected to increase less than the market. However, during the bear market, the loss on holding TravelCenters will be expected to be smaller as well. Although it is vital to follow TravelCenters Of Ame current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. Our philosophy towards measuring future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if TravelCenters Of America expected return of 1.07 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use TravelCenters Of Ame information ratio, downside variance, day median price, as well as the relationship between the treynor ratio and kurtosis to analyze future returns on TravelCenters Of Ame.
Volatility is a rate at which the price of TravelCenters or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of TravelCenters may increase or decrease. In other words, similar to TravelCenters's beta indicator, it measures the risk of TravelCenters and helps estimate the fluctuations that may happen in a short period of time. So if prices of TravelCenters fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is TravelCenters's Liquidity

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

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.

TravelCenters exotic insider transaction detected

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 insider trading alert for general transaction of common stock by Adam Portnoy, the corporate stakeholder, on 23rd of September 2020. This event was filed by Travelcenters Of America with SEC on 2020-09-23. 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?

TravelCenters Of Ame generated the yearly revenue of 5.38 B. Reported Net Income was 27.5 M with gross profit of 511.39 M.

Our perspective of the current TravelCenters rise

TravelCenters current downside variance builds up over 7.75. As of the 4th of November, TravelCenters has the Semi Deviation of 2.23, coefficient of variation of 567.21, and Risk Adjusted Performance of 0.2094. 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 29.79 per share. Given that TravelCenters Of Ame has jensen alpha of 0.87, 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 Final Take On TravelCenters

Whereas some other entities within the specialty retail industry are still a little expensive, even after the recent corrections, TravelCenters may offer a potential longer-term growth to investors. The inconsistency in the assessment between current TravelCenters valuation and our trade advice on TravelCenters is due to the recent market swings and your selection of investing horizon. 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 TravelCenters.

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 Ellen Johnson 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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