Latam Airlines Group Stock Probability of Future Stock Price Finishing Over 28.49
| LTM Stock | USD 26.86 0.85 3.07% |
LATAM |
LATAM Airlines Target Price Odds to finish over 28.49
The tendency of LATAM Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to move over $ 28.49 or more in 90 days |
| 26.86 | 90 days | 28.49 | roughly 2.85 |
Based on a normal probability distribution, the odds of LATAM Airlines to move over $ 28.49 or more in 90 days from now is roughly 2.85 (This LATAM Airlines Group probability density function shows the probability of LATAM Stock to fall within a particular range of prices over 90 days) . Probability of LATAM Airlines Group price to stay between its current price of $ 26.86 and $ 28.49 at the end of the 90-day period is about 29.41 .
Considering the 90-day investment horizon LATAM Airlines has a beta of 0.42. This indicates as returns on the market go up, LATAM Airlines average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding LATAM Airlines Group will be expected to be much smaller as well. Additionally LATAM Airlines Group has an alpha of 0.0629, implying that it can generate a 0.0629 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). LATAM Airlines Price Density |
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Predictive Modules for LATAM Airlines
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as LATAM Airlines Group. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of LATAM Airlines' 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.
LATAM Airlines Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. LATAM Airlines is not an exception. The market had few large corrections towards the LATAM Airlines' value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold LATAM Airlines Group, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of LATAM Airlines within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.42 | |
σ | Overall volatility | 1.13 | |
Ir | Information ratio | -0.0044 |
LATAM Airlines Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of LATAM Airlines for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for LATAM Airlines Group can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| LATAM Airlines Group has 7.04 B in debt with debt to equity (D/E) ratio of 3.31, meaning that the company heavily relies on borrowing funds for operations. LATAM Airlines Group has a current ratio of 0.57, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for LATAM to invest in growth at high rates of return. | |
| Latest headline from gurufocus.com: LATAM Airlines Group SA Shares Down 5.3 percent on Nov 22 |
LATAM Airlines Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of LATAM Stock often depends not only on the future outlook of the current and potential LATAM Airlines' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. LATAM Airlines' indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 302.2 M | |
| Cash And Short Term Investments | 1.7 B |
LATAM Airlines Technical Analysis
LATAM Airlines' future price can be derived by breaking down and analyzing its technical indicators over time. LATAM Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of LATAM Airlines Group. In general, you should focus on analyzing LATAM Stock price patterns and their correlations with different microeconomic environments and drivers.
LATAM Airlines Predictive Forecast Models
LATAM Airlines' time-series forecasting models is one of many LATAM Airlines' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary LATAM Airlines' historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about LATAM Airlines Group
Checking the ongoing alerts about LATAM Airlines for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for LATAM Airlines Group help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| LATAM Airlines Group has 7.04 B in debt with debt to equity (D/E) ratio of 3.31, meaning that the company heavily relies on borrowing funds for operations. LATAM Airlines Group has a current ratio of 0.57, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for LATAM to invest in growth at high rates of return. | |
| Latest headline from gurufocus.com: LATAM Airlines Group SA Shares Down 5.3 percent on Nov 22 |
Check out LATAM Airlines Backtesting, LATAM Airlines Valuation, LATAM Airlines Correlation, LATAM Airlines Hype Analysis, LATAM Airlines Volatility, LATAM Airlines History as well as LATAM Airlines Performance. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LATAM Airlines. If investors know LATAM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LATAM Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of LATAM Airlines Group is measured differently than its book value, which is the value of LATAM that is recorded on the company's balance sheet. Investors also form their own opinion of LATAM Airlines' value that differs from its market value or its book value, called intrinsic value, which is LATAM Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LATAM Airlines' market value can be influenced by many factors that don't directly affect LATAM Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LATAM Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if LATAM Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LATAM Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.