Tessco Story

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TESS -- USA Stock  

USD 7.07  0.11  1.58%

It looks like Cisco Systems will continue to recover faster as its price went down 1.68% today to TESSCO Technologies's 1.02%. While some millenniums may be indifferent towards technology space, we will examine how invariable are TESSCO Technologies fundamentals compared to Cisco Systems. We are going to discuss some of the competitive aspects of both TESSCO and Cisco.
Published over three weeks ago
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Are TESSCO (NASDAQ:TESS) retail investors shifting to Cisco (NASDAQ:CSCO)?
By analyzing existing fundamental indicators between TESSCO Technologies and Cisco, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Cisco with a short position in TESSCO Technologies. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. TESSCO Technologies has an asset utilization ratio of 299.4 percent. This connotes that the company is making $2.99 for each dollar of assets. An increasing asset utilization means that TESSCO Technologies Incorporate is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Tessco or Cisco is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Tessco Tech dividends

A dividend is the distribution of a portion of Tessco Tech earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Tessco Tech dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Tessco one year expected dividend income is about $0.21 per share.
Tessco Tech Dividend Yield is relatively stable at the moment as compared to the past year. Tessco Tech reported last year Dividend Yield of 0.06. As of 02/26/2021, Dividends per Basic Common Share is likely to grow to 1.43, while Payment of Dividends and Other Cash Distributions is likely to drop (14 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-13.6 M-14 M
Dividend Yield 0.06  0.07 
Dividends per Basic Common Share 1.32  1.43 
Investing in stocks that pay dividends, such as stock of Tessco Tech, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Tessco Tech must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Tessco Tech. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Tessco Tech's Liquidity

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

Correlation Between Tessco and Cisco Systems

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Tessco Tech together with similar or unrelated positions with a negative correlation. For example, you can also add Cisco Systems to your portfolio. If Cisco Systems is not perfectly correlated to Tessco Tech it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Tessco Tech for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between TESS and CSCO for more information.

Is Tessco Tech valued sensibly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze TESSCO Technologies revenue. Based on the latest financial disclosure, TESSCO Technologies Incorporate reported 507.23 M of revenue. This is 87.55% lower than that of the Technology sector and 89.64% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 94.62% higher than that of TESSCO Technologies. As for Cisco Systems we see revenue of 48.07 B, which is much higher than that of the Communication Equipment

48.1 B
TESS507.23 Million0.96
Sector4.08 Billion7.74
CSCO48.07 Billion91.3

Will TESSCO price fall impact its balance sheet?

The semi deviation is down to 3.37 as of today. TESSCO Technologies Incorporate shows above-average downside volatility for the selected time horizon. We advise investors to inspect TESSCO Technologies Incorporate further and ensure that all market timing and asset allocation strategies are consistent with the estimation of TESSCO Technologies future alpha.

The Bottom Line

While some other entities within the communication equipment industry are still a little expensive, even after the recent corrections, TESSCO Technologies may offer a potential longer-term growth to retail investors. To conclude, as of the 31st of January 2021, our final 30 days buy vs. sell advice on the enterprise is Strong Sell. We believe TESSCO Technologies is currently overvalued with below average odds of financial turmoil for the next two years.

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 Tessco Tech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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