Every cloud has a silver lining, and for Cogeco Inc (CA:CGO), the silver lining appears to be a potential bull run. This diversified telecommunication services company has been gradually ascending, with its 50-day moving average at 50.34 and a period momentum indicator of 0.52. With a strong buy consensus from analysts and a net income from continuing operations of $350.2M, the company seems to be on a stable financial footing. Despite a high PEG ratio of 2.33, which typically suggests overvaluation, the company's price book of 0.60 and price sales of 0.29 indicate that the stock is reasonably priced relative to its book and sales values. With a potential upside price of 58.7, Cogeco's stock could be a profitable investment for those willing to ride the bull run. As numerous millennials are steering clear of the diversified telecommunication services sector, it's worthwhile to delve deeper into Cogeco Inc. and attempt to comprehend its current market trends. As anticipated, Cogeco is beginning to demonstrate its true potential as insiders grow increasingly confident in the company's future prospects. The returns on the market and those on Cogeco have shown some correlation over the past few months. The company's robust fundamental indicators may also suggest signs of long-term gains for Cogeco insiders. Cogeco Inc. is set to announce its earnings today.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Cogeco Inc. In general, sophisticated investors focus on analyzing Cogeco stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Cogeco'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
Cogeco's intrinsic value. In addition to deriving basic predictive indicators for Cogeco, many experienced traders also check how macroeconomic factors affect Cogeco 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 Cogeco'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 Cogeco. Your research has to be compared to or analyzed against Cogeco's peers to derive any actionable benefits. When done correctly, Cogeco'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 Cogeco Inc.
How important is Cogeco's Liquidity
Cogeco
financial leverage refers to using borrowed capital as a funding source to finance Cogeco Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cogeco 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 Cogeco'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 Cogeco'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 Cogeco's total debt and its cash.
Cogeco Gross Profit
Cogeco Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cogeco 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 Cogeco Gross Profit growth over the last 10 years. Please check Cogeco's
gross profit and other
fundamental indicators for more details.
Closer look at Cogeco Mean Deviation
Cogeco Inc has current Mean Deviation of 1.34. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV)N |
| = | 1.34 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of Cogeco |
| N | = | Number of calculation points for selected time horizon |
Let's now compare Cogeco Mean Deviation to its closest peers:
| CGO.TO | 1.3421332015610652 |
| WISH.V | 2.51 |
| MKO.V | 2.62 |
| ZCC-H.V | 1.33 |
| FTG.TO | 1.7 |
"As the saying goes, 'the trend is your friend,' and for Cogeco Inc. (CA:CGO), the trend is certainly looking friendly.
The telecom services company has been gradually ascending, with a day typical price of $57.3, a significant improvement from its 52-week low of $44.22. The company's 200-day moving average stands at $52.25, indicating a steady upward momentum. Furthermore, the company's beta of 0.37 suggests lower volatility compared to the market, which could be appealing to risk-averse investors. Cogeco's
financial health also appears robust, with a current ratio of 1.37X and net assets of $9.87B. However, investors should be aware of the company's net interest income loss of $251.1M. Despite this, the company's EPS estimate for next year is $8.59, suggesting potential for future growth. With these factors in mind, a potential bull run could be on the horizon for Cogeco." .
Cogeco technical analysis suggests possible throwback
Cogeco Inc.'s recent risk-adjusted performance, measured at 0.13, highlights the company's relative stability in a volatile market. Although this figure is not particularly impressive, it indicates a potential opportunity for traders. It suggests that the stock, despite its fluctuations, has managed to yield a reasonable return relative to the risk it has imposed on its shareholders' investments. Therefore, based on this
technical analysis, investors might want to consider Cogeco for its potential to rebound, while continuing to monitor its performance against market movements. Cogeco Inc exhibits relatively low volatility with a skewness of 0.28 and kurtosis of 0.37. However, we recommend all investors to independently investigate Cogeco Inc to ensure all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Cogeco's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Cogeco's stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. While Cogeco Inc (CA:CGO) has been on a slow upswing, it's the valuation real value of
43.19 that might give investors pause, as it is currently trading at a premium. However, with a strong buy consensus from analysts and a positive EPS estimate of 8.59 for the next fiscal year ending in August, the potential for a surge can't be completely ruled out. The potential upside price is estimated at
58.7, though it's important to note that there's also a possible downside risk of 55.3. In terms of valuation, Cogeco's market value is 57.73, and its hype value is 57.41, indicating a fairly balanced perception in the market. However, with a single strong buy among analysts, it might be prudent for investors to proceed with caution and keep an eye on any changes in analyst consensus. .
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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