Magazine Luiza (Brazil) Probability of Future Stock Price Finishing Under 1.96
| MGLU3 Stock | BRL 9.03 0.04 0.44% |
Magazine |
Magazine Luiza Target Price Odds to finish below 1.96
The tendency of Magazine 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 drop to R$ 1.96 or more in 90 days |
| 9.03 | 90 days | 1.96 | near 1 |
Based on a normal probability distribution, the odds of Magazine Luiza to drop to R$ 1.96 or more in 90 days from now is near 1 (This Magazine Luiza SA probability density function shows the probability of Magazine Stock to fall within a particular range of prices over 90 days) . Probability of Magazine Luiza SA price to stay between R$ 1.96 and its current price of R$9.03 at the end of the 90-day period is about 15.22 .
Assuming the 90 days trading horizon Magazine Luiza has a beta of 0.49. This indicates as returns on the market go up, Magazine Luiza average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Magazine Luiza SA will be expected to be much smaller as well. Additionally Magazine Luiza SA has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Magazine Luiza Price Density |
| Price |
Predictive Modules for Magazine Luiza
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Magazine Luiza SA. 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.Magazine Luiza Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Magazine Luiza is not an exception. The market had few large corrections towards the Magazine Luiza's 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 Magazine Luiza SA, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Magazine Luiza within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.62 | |
β | Beta against Dow Jones | 0.49 | |
σ | Overall volatility | 1.15 | |
Ir | Information ratio | -0.2 |
Magazine Luiza 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 Magazine Luiza for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Magazine Luiza SA can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Magazine Luiza SA generated a negative expected return over the last 90 days | |
| Magazine Luiza SA has high historical volatility and very poor performance | |
| Magazine Luiza SA has accumulated about 1.78 B in cash with (4.36 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.27. | |
| Roughly 56.0% of the company outstanding shares are owned by corporate insiders |
Magazine Luiza 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 Magazine Stock often depends not only on the future outlook of the current and potential Magazine Luiza's 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. Magazine Luiza's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 6.7 B | |
| Cash And Short Term Investments | 4.1 B |
Magazine Luiza Technical Analysis
Magazine Luiza's future price can be derived by breaking down and analyzing its technical indicators over time. Magazine Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Magazine Luiza SA. In general, you should focus on analyzing Magazine Stock price patterns and their correlations with different microeconomic environments and drivers.
Magazine Luiza Predictive Forecast Models
Magazine Luiza's time-series forecasting models is one of many Magazine Luiza's 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 Magazine Luiza's 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 Magazine Luiza SA
Checking the ongoing alerts about Magazine Luiza for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Magazine Luiza SA help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Magazine Luiza SA generated a negative expected return over the last 90 days | |
| Magazine Luiza SA has high historical volatility and very poor performance | |
| Magazine Luiza SA has accumulated about 1.78 B in cash with (4.36 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.27. | |
| Roughly 56.0% of the company outstanding shares are owned by corporate insiders |
Additional Tools for Magazine Stock Analysis
When running Magazine Luiza's price analysis, check to measure Magazine Luiza's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Magazine Luiza is operating at the current time. Most of Magazine Luiza's value examination focuses on studying past and present price action to predict the probability of Magazine Luiza's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Magazine Luiza's price. Additionally, you may evaluate how the addition of Magazine Luiza to your portfolios can decrease your overall portfolio volatility.