Arc Resources Stock Buy Hold or Sell Recommendation
| ARX Stock | CAD 26.72 0.04 0.15% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding ARC Resources is 'Hold'. The recommendation algorithm takes into account all of ARC Resources' available fundamental, technical, and predictive indicators you will find on this site.
Check out ARC Resources Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as ARC and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards ARC Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
ARC |
Execute ARC Resources Buy or Sell Advice
The ARC recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on ARC Resources. Macroaxis does not own or have any residual interests in ARC Resources or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute ARC Resources' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
ARC Resources Trading Alerts and Improvement Suggestions
| ARC Resources has accumulated 2.21 B in total debt with debt to equity ratio (D/E) of 0.31, which is about average as compared to similar companies. ARC Resources has a current ratio of 0.45, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist ARC Resources until it has trouble settling it off, either with new capital or with free cash flow. So, ARC Resources' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like ARC Resources sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for ARC to invest in growth at high rates of return. When we think about ARC Resources' use of debt, we should always consider it together with cash and equity. | |
| Latest headline from news.google.com: ARC Resources Anemic Earnings Might Be Worse Than You Think - Yahoo Finance |
ARC Resources Returns Distribution Density
The distribution of ARC Resources' historical returns is an attempt to chart the uncertainty of ARC Resources' future price movements. The chart of the probability distribution of ARC Resources daily returns describes the distribution of returns around its average expected value. We use ARC Resources price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of ARC Resources returns is essential to provide solid investment advice for ARC Resources.
| Mean Return | 0.14 | Value At Risk | -3.08 | Potential Upside | 3.41 | Standard Deviation | 2.13 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of ARC Resources historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
ARC Resources Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (251.1M) | (8.1M) | (400K) | 57.1M | (56M) | (53.2M) | |
| Free Cash Flow | (44.8M) | 320.9M | 953.9M | 2.4B | 567.8M | 596.2M | |
| Depreciation | 800.4M | 1.4B | 1.4B | 1.3B | 1.4B | 1.5B | |
| Other Non Cash Items | 6.7M | 20.8M | (215.5M) | (424.9M) | 774.5M | 813.2M | |
| Dividends Paid | 212.4M | 102.7M | 133.1M | 294.3M | 392M | 240.0M | |
| Capital Expenditures | 683.6M | 334.8M | 1.1B | 1.4B | 1.8B | 1.9B | |
| Net Income | (27.6M) | (547.2M) | 786.6M | 2.3B | 1.6B | 1.7B | |
| End Period Cash Flow | 8.5M | 400K | 27.2M | 57.1M | 1.1M | 1.0M | |
| Investments | (673.3M) | (364.3M) | (2.5M) | (1.4B) | (1.6B) | (1.5B) | |
| Net Borrowings | (4.2M) | (196.8M) | (739M) | (805.8M) | (725.2M) | (689.0M) | |
| Change To Netincome | 182.4M | 677M | 689.1M | 79.2M | 91.1M | 174.1M |
ARC Resources Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to ARC Resources or Oil, Gas & Consumable Fuels sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that ARC Resources' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a ARC stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | 0.04 | |
σ | Overall volatility | 2.16 | |
Ir | Information ratio | 0 |
ARC Resources Volatility Alert
ARC Resources has relatively low volatility with skewness of 0.79 and kurtosis of 2.74. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ARC Resources' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ARC Resources' 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 financial instruments as prices fall.ARC Resources Fundamentals Vs Peers
Comparing ARC Resources' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ARC Resources' direct or indirect competition across all of the common fundamentals between ARC Resources and the related equities. This way, we can detect undervalued stocks with similar characteristics as ARC Resources or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of ARC Resources' fundamental indicators could also be used in its relative valuation, which is a method of valuing ARC Resources by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare ARC Resources to competition |
| Fundamentals | ARC Resources | Peer Average |
| Return On Equity | 0.17 | -0.31 |
| Return On Asset | 0.0807 | -0.14 |
| Profit Margin | 0.25 % | (1.27) % |
| Operating Margin | 0.32 % | (5.51) % |
| Current Valuation | 18.28 B | 16.62 B |
| Shares Outstanding | 591.7 M | 571.82 M |
| Shares Owned By Insiders | 0.39 % | 10.09 % |
| Shares Owned By Institutions | 37.55 % | 39.21 % |
| Number Of Shares Shorted | 6.64 M | 4.71 M |
| Price To Earning | 5.61 X | 28.72 X |
| Price To Book | 2.05 X | 9.51 X |
| Price To Sales | 3.12 X | 11.42 X |
| Revenue | 6.36 B | 9.43 B |
| Gross Profit | 4.57 B | 27.38 B |
| EBITDA | 3.13 B | 3.9 B |
| Net Income | 1.6 B | 570.98 M |
| Cash And Equivalents | 57.1 M | 2.7 B |
| Cash Per Share | 0.12 X | 5.01 X |
| Total Debt | 2.21 B | 5.32 B |
| Debt To Equity | 0.31 % | 48.70 % |
| Current Ratio | 0.46 X | 2.16 X |
| Book Value Per Share | 13.06 X | 1.93 K |
| Cash Flow From Operations | 2.39 B | 971.22 M |
| Short Ratio | 3.78 X | 4.00 X |
| Earnings Per Share | 2.09 X | 3.12 X |
| Price To Earnings To Growth | 2.65 X | 4.89 X |
| Target Price | 31.25 | |
| Beta | 1.21 | -0.15 |
| Market Capitalization | 15.81 B | 19.03 B |
| Total Asset | 12.38 B | 29.47 B |
| Retained Earnings | 1.14 B | 9.33 B |
| Working Capital | (88.2 M) | 1.48 B |
| Annual Yield | 0.03 % |
ARC Resources Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as ARC . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About ARC Resources Buy or Sell Advice
When is the right time to buy or sell ARC Resources? Buying financial instruments such as ARC Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having ARC Resources in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumption Thematic Idea Now
Consumption
Companies that deliver final goods such as cars or clothing for consumption by consumers. The Consumption theme has 19 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumption Theme or any other thematic opportunities.
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Other Information on Investing in ARC Stock
ARC Resources financial ratios help investors to determine whether ARC Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in ARC with respect to the benefits of owning ARC Resources security.