Smith Douglas Homes Stock Buy Hold or Sell Recommendation
| SDHC Stock | 33.59 2.07 6.57% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Smith Douglas Homes is 'Hold'. Macroaxis provides Smith Douglas buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SDHC positions.
Check out Smith Douglas 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 Smith and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Smith Douglas Homes. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.
Smith |
Execute Smith Douglas Buy or Sell Advice
The Smith recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Smith Douglas Homes. Macroaxis does not own or have any residual interests in Smith Douglas Homes or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Smith Douglas' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Excited | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Smith Douglas Trading Alerts and Improvement Suggestions
| Smith Douglas Homes generated a negative expected return over the last 90 days | |
| Smith Douglas Homes has high historical volatility and very poor performance | |
| Latest headline from gurufocus.com: Smith Douglas Homes Corp Stock Price Up 3.44 percent on Nov 22 |
Smith Douglas Returns Distribution Density
The distribution of Smith Douglas' historical returns is an attempt to chart the uncertainty of Smith Douglas' future price movements. The chart of the probability distribution of Smith Douglas daily returns describes the distribution of returns around its average expected value. We use Smith Douglas Homes price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Smith Douglas returns is essential to provide solid investment advice for Smith Douglas.
| Mean Return | -0.06 | Value At Risk | -5.92 | Potential Upside | 6.08 | Standard Deviation | 3.15 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Smith Douglas 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.
Smith Douglas 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 Smith Douglas or Household Durables 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 Smith Douglas' 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 Smith 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 | -0.18 | |
β | Beta against Dow Jones | 0.98 | |
σ | Overall volatility | 3.16 | |
Ir | Information ratio | -0.06 |
Smith Douglas Volatility Alert
Smith Douglas Homes exhibits very low volatility with skewness of 0.03 and kurtosis of -0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Smith Douglas' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Smith Douglas' 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.Smith Douglas Fundamentals Vs Peers
Comparing Smith Douglas' 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 Smith Douglas' direct or indirect competition across all of the common fundamentals between Smith Douglas and the related equities. This way, we can detect undervalued stocks with similar characteristics as Smith Douglas or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Smith Douglas' fundamental indicators could also be used in its relative valuation, which is a method of valuing Smith Douglas by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Smith Douglas to competition |
| Fundamentals | Smith Douglas | Peer Average |
| Return On Equity | 0.7 | -0.31 |
| Profit Margin | 0.16 % | (1.27) % |
| Operating Margin | 0.14 % | (5.51) % |
| Current Valuation | 1.71 B | 16.62 B |
| Shares Outstanding | 8.85 M | 571.82 M |
| Shares Owned By Insiders | 3.69 % | 10.09 % |
| Shares Owned By Institutions | 35.20 % | 39.21 % |
| Number Of Shares Shorted | 204.69 K | 4.71 M |
| Price To Book | 25.17 X | 9.51 X |
| Price To Sales | 1.90 X | 11.42 X |
| Revenue | 764.63 M | 9.43 B |
| EBITDA | 124.97 M | 3.9 B |
| Net Income | 123.18 M | 570.98 M |
| Total Debt | 78.4 M | 5.32 B |
| Cash Flow From Operations | 76.26 M | 971.22 M |
| Short Ratio | 1.45 X | 4.00 X |
| Target Price | 27.0 | |
| Number Of Employees | 364 | 18.84 K |
| Market Capitalization | 1.61 B | 19.03 B |
| Total Asset | 352.69 M | 29.47 B |
| Working Capital | 260.62 M | 1.48 B |
| Net Asset | 352.69 M |
Note: Acquisition by Jackson Jeffrey T of 8605 shares of Smith Douglas at 29.7713 subject to Rule 16b-3 [view details]
Smith Douglas Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Smith . 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 Smith Douglas Buy or Sell Advice
When is the right time to buy or sell Smith Douglas Homes? Buying financial instruments such as Smith 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 Smith Douglas 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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Check out Smith Douglas 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. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Is Household Durables 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 Smith Douglas. If investors know Smith 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 Smith Douglas listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Revenue Per Share 6.7 K | Quarterly Revenue Growth (0.03) | Return On Equity 0.6993 |
The market value of Smith Douglas Homes is measured differently than its book value, which is the value of Smith that is recorded on the company's balance sheet. Investors also form their own opinion of Smith Douglas' value that differs from its market value or its book value, called intrinsic value, which is Smith Douglas' 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 Smith Douglas' market value can be influenced by many factors that don't directly affect Smith Douglas' 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 Smith Douglas' value and its price as these two are different measures arrived at by different means. Investors typically determine if Smith Douglas is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Smith Douglas' 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.