The company's average rating is Buy from 2 analysts.
Our trade recommendations module complements current
analysts and expert consensus on Hollysys Automation. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
The successful prediction of Wells Fargo
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Wells Fargo International, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Wells Fargo based on Wells Fargo hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Wells Fargo's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Wells Fargo's related companies.
Use Technical Analysis to project Wells expected Price
Wells Fargo technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.
A focus of Wells Fargo technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Wells Fargo trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Sector Allocation
Exchange-Traded Funds use many different techniques to achieve diversification. One of the ways Wells Fargo ETF is managing risk is by picking assets from different sectors and across various asset classes. It helps to ensure that returns are uncorrelated, and risk is spread across the underlying asset classes and industries. Within the same asset class, diversification can be achieved by investing in various investment styles through cross-sector allocation. Below map breaks down Wells Fargo sector allocation.
VolatilityInstrument Allocation
The asset allocation of funds such as Wells Fargo usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Wells Fargo International
DetailsBreaking it down a bit more
Hollysys Automation reported the previous year's revenue of 563.92
M. Net Income was 69.49
M with profit before overhead, payroll, taxes, and interest of 190.57
M.
Deferred Revenue Breakdown
Hollysys Automation Deferred Revenue is increasing over the last several years with slightly volatile swings. Deferred Revenue is predicted to flatten to about 144.9
M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Hollysys Automation Deferred Revenue is most likely to increase significantly in the upcoming years. The last year's value of Deferred Revenue was reported at 160.13 Million
| 2014 | 138.59 Million |
| 2015 | 82 Million |
| 2016 | 107.41 Million |
| 2017 | 137.69 Million |
| 2018 | 141.38 Million |
| 2019 | 139.24 Million |
| 2020 | 160.13 Million |
| 2021 | 144.87 Million |
Will Hollysys drop impact its fundamentals?
Variance is down to 16.63. It may hint to a possible volatility drop. Hollysys Automation currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.67. However, we advise investors to further question Hollysys Automation expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hollysys Automation's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hollysys Automation's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Hollysys Automation
While other companies under the electrical equipment & parts industry are still a bit expensive, Hollysys Automation may offer a potential longer-term growth to stockholders. To conclude, as of the 30th of August 2021, we believe that at this point, Hollysys Automation is not too volatile with
very small probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our final 90 days buy-hold-sell advice 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 Wells Fargo International. Please refer to our
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