Will Tsakos Energy (NYSE:TNP) continue to decline in October?

As many millenniums are excited about energy space, it is only fair to recap Tsakos Energy Navigation against current market trends. While the market posted solid gains today, things may not be as exiting for Tsakos Energy in the long run. Enough of the dispositions of the company stock price movements has been a presentation of what is happening in the market overall. Healthy basic indicators of the firm may also hint at signals of long period gains for Tsakos insiders. Tsakos Energy Navigation is scheduled to announce its earnings today.
Published over a year ago
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Reviewed by Michael Smolkin

The entity's average rating is Buy from 9 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 Tsakos Energy market sentiment investors' perception of the future value of Tsakos. Let us look at a few aspects of Tsakos technical analysis.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Tsakos Energy Navigation. In general, sophisticated investors focus on analyzing Tsakos Energy stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Tsakos Energy'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 Tsakos Energy's intrinsic value. In addition to deriving basic predictive indicators for Tsakos Energy, many experienced traders also check how macroeconomic factors affect Tsakos Energy 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 Tsakos Energy'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 Tsakos Energy. Your research has to be compared to or analyzed against Tsakos Energy's peers to derive any actionable benefits. When done correctly, Tsakos Energy'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 Tsakos Energy Navigation.

How important is Tsakos Energy's Liquidity

Tsakos Energy financial leverage refers to using borrowed capital as a funding source to finance Tsakos Energy Navigation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tsakos Energy 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. Financial leverage can amplify the potential profits to Tsakos Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Tsakos Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Tsakos Energy's total debt and its cash.

Tsakos Energy Gross Profit

Tsakos Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Tsakos Energy 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 Tsakos Energy Gross Profit growth over the last 10 years. Please check Tsakos Energy's gross profit and other fundamental indicators for more details.

Closer look at Tsakos Energy Semi Variance

Tsakos Energy Navigation has current Semi Variance of 4.27. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance 
 = 
SUM(RET DEV)2 
N(ZERO) 
 = 
4.27
SUM = Summation notation
RET DEV = Actual return deviation over selected period
N(ZERO) = Number of points with returns less than zero
Let's now compare Tsakos Energy Semi Variance to its closest peers:
TNP
TRP
WMB
LNG
TNP4.2727244248942675
TRP1.77
WMB2.57
LNG4.2

Anything left for Tsakos Energy after the decline?

Information ratio is down to 0.11. It may hint at a possible volatility decline. Tsakos Energy Navigation is displaying above-average volatility over the selected time horizon. Investors should scrutinize Tsakos Energy Navigation independently to ensure intended market timing strategies are aligned with expectations about Tsakos Energy volatility.

Our Conclusion on Tsakos Energy

Although some companies in the oil & gas midstream industry are either recovering or due for a correction, Tsakos Energy may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 23rd of September 2020, our analysis shows that Tsakos Energy hyperactively responds to market trends. The firm is fairly valued and projects below average chance of financial distress for the next 2 years. Our ongoing 30 days buy vs. sell advice on the firm is Strong Buy.

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Editorial Staff

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 Tsakos Energy Navigation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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