This firm's average rating is Sell from 12 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 Texas Capital market sentiment investors' perception of the future value of Texas. Let us look at a few aspects of Texas technical analysis. About
97.0% of the company shares are owned by institutional investors. Texas Capital Bancsh has price-to-book ratio of 1.3. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity last dividend was issued on the March 3, 2016.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Texas Capital Bancshares. In general, sophisticated investors focus on analyzing Texas Capital stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Texas Capital'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
Texas Capital's intrinsic value. In addition to deriving basic predictive indicators for Texas Capital, many experienced traders also check how macroeconomic factors affect Texas Capital 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, anticipate that the market will even out over time. This tendency of Texas Capital's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Texas Capital. Your research has to be compared to or analyzed against Texas Capital's peers to derive any actionable benefits. When done correctly, Texas Capital's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Texas Capital Bancshares.
How does Texas Stands against Peers?
Analyzing Texas Capital 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 Texas Capital 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
Texas Capital Competition DetailsTexas Capital Gross Profit
Texas Capital Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Texas Capital previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Texas Capital Gross Profit growth over the last 10 years. Please check Texas Capital's
gross profit and other
fundamental indicators for more details.
Closer look at Texas Capital Variance
Texas Capital Bancshares has current Variance of 9.02. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2 N |
| = | 9.02 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Texas Capital Variance to its closest peers:
| TCBI | 9.015135658576076 |
| CIHHF | 12.61 |
| CIHKY | 6.75 |
| HDB | 2.71 |
| SBRCY | 6.2 |
Our perspective of the current Texas Capital drop
Current downside variance is at 2.66. As of the 21st of January, Texas Capital has the Risk Adjusted Performance of 0.3473,
coefficient of variation of 294.06, and Semi Deviation of 0.8062. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Texas Capital Bancsh, 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 are able to interpolate and collect nineteen
technical drivers for Texas Capital Bancshares, which can be compared to its competition. Please validate
Texas Capital Bancsh downside deviation,
treynor ratio,
expected short fall, as well as the
relationship between the
variance and
potential upside to decide if Texas Capital is priced more or less accurately, providing market reflects its prevalent price of 66.6 per share. Given that Texas Capital Bancsh has
jensen alpha of 0.8615, we advise you to double-check Texas Capital Bancshares's current market performance to make sure the company can sustain itself at a future point.
Our Takeaway on Texas Capital Investment
While some firms under the banks—regional industry are still a bit expensive, Texas Capital may offer a potential longer-term growth to stockholders. To summarize, as of the 21st of January 2021, our research shows that Texas Capital is a rather very steady investment opportunity with a
low probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be
fairly valued. Our ongoing 30 days 'Buy-vs-Sell' recommendation on the company is
Strong Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Texas Capital Bancshares. Please refer to our
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