Tuesday Story

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TUES -- USA Stock  

USD 1.06  0.15  16.48%

As many rational traders are trying to avoid consumer defensive space, it makes sense to sum up Tuesday Morning Corp a little further and understand how it stands against Ollies Bargain and other similar entities. We are going to discuss some of the competitive aspects of both Tuesday and Ollies.
Published over three weeks ago
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Ollies Bargain Outlet vs Tuesday Morning Corp
By analyzing existing fundamental indicators between Tuesday Morning and Ollies, 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 Ollies with a short position in Tuesday Morning. 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. Tuesday Morning has an asset utilization ratio of 276.27 percent. This connotes that the company is making $2.76 for each dollar of assets. An increasing asset utilization means that Tuesday Morning Corp 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 Tuesday or Ollies is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Tuesday Morning's Liquidity

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

Correlation Between Tuesday and Ollies Bargain Outlet

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 Tuesday Morning together with similar or unrelated positions with a negative correlation. For example, you can also add Ollies Bargain to your portfolio. If Ollies Bargain is not perfectly correlated to Tuesday Morning 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 Tuesday Morning 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 TUES and OLLI for more information.

Note

Are you currently holding both Tuesday Morning and Ollies Bargain in your portfolio? Please note if you are using this as a pair-trade strategy between Tuesday Morning and Ollies Bargain, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Is Tuesday Morning 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

Now, let's check Tuesday Morning revenue. Based on the latest financial disclosure, Tuesday Morning Corp reported 1000 M of revenue. This is 93.27% lower than that of the Consumer Defensive sector and 98.88% lower than that of the Discount Stores industry. The revenue for all United States stocks is 89.4% higher than that of Tuesday Morning. As for Ollies Bargain we see revenue of 1.43 B, which is 98.39% lower than that of the Discount Stores

Sector
9.4 B
TUES1,000 Million8.43
Sector9.43 Billion79.52
OLLI1.43 Billion12.05

Will Tuesday Morning growth be reliable after the spike?

Jensen alpha is down to 2.36. It may connote a possible volatility fall. Tuesday Morning Corp is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Tuesday Morning implied risk. Tuesday Morning Corp is a potential penny stock. Although Tuesday Morning may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Tuesday Morning Corp. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line

While other companies within the discount stores industry are still a little expensive, even after the recent corrections, Tuesday Morning may offer a potential longer-term growth to retail investors. Taking everything into account, as of the 29th of August 2020, our primary 30 days buy-sell recommendation on the enterprise is Strong Sell. However, we believe Tuesday Morning is currently undervalued with below average chance of bankruptcy 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 Achuva Shats do not own shares of Tuesday Morning Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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