Three analysts have given Build-A-Bear Workshop a "Strong Buy" rating. This consensus isn't solely based on technical analysis, which typically involves examining price momentum, patterns, and trends from historical data to gauge market sentiment and predict future movements. Instead, analysts likely consider a mix of factors, including fundamentals and market conditions. Notably, about 95% of the company's shares are held by institutional investors like insurance companies, indicating strong institutional confidence. The company's book value stands at $9.46, and it has a Price/Earnings to Growth (PEG) ratio of 0.55, suggesting potential undervaluation. The last dividend was issued on November 27, 2024. These metrics provide a snapshot of the company's financial health and investment appeal.
Key Points
Build-A-Bear Workshop's stock has been showing promising signs, with a Price Percent Change of 22.6, indicating a strong upward trend that could continue into January. However, investors should be cautious of the Total Risk Alpha at -0.25, which suggests that the stock's returns may not be compensating for its risk, potentially impacting its ability to sustain this momentum.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Build A Bear Workshop. In general, sophisticated investors focus on analyzing Build A stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Build A'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
Build A's intrinsic value. In addition to deriving basic predictive indicators for Build A, many experienced traders also check how macroeconomic factors affect Build A price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Build A. Your research has to be compared to or analyzed against Build A's peers to derive any actionable benefits. When done correctly, Build A'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 Build A Bear.
How does Build Stands against Peers?
Analyzing Build A competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Build A across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
Build A Competition DetailsBuild A Gross Profit
Build A Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Build A 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 Build A Gross Profit growth over the last 10 years. Please check Build A's
gross profit and other
fundamental indicators for more details.
Closer look at Build A Semi Deviation
Build A Bear Workshop has current Semi Deviation of 2.13. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.
Semi-deviation is the square root of semi-variance.
Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Deviation | = | SQRT(SV) |
| = | 2.13 |
Let's now compare Build A Semi Deviation to its closest peers:
| BBW | 2.1307283152095744 |
| SBH | 1.77 |
| HZO | 2.94 |
| WSM | 1.63 |
| AAP | 3.31 |
Buy low, sell high is a mantra that resonates with investors eyeing Build-A-Bear Workshop (NYSE: BBW) as it continues its upward trajectory. With a 52-week high of 47.01, the stock has shown impressive resilience, bolstered by a strong operating income of 65.4 million. The company's PEG ratio of 0.55 suggests that it is undervalued relative to its growth potential, making it an attractive option for growth-focused investors. However, with a beta of 1.52, the stock is more volatile than the market, which could lead to significant price swings. As January unfolds, investors will be keen to see if BBW can maintain its momentum amidst these dynamics..
Will Build A latest climb continue?
Build-A-Bear Workshop's stock has recently shown a skewness of over 0.21, hinting at a potential for continued upward movement. This positive skewness suggests more frequent smaller gains and fewer large losses, which can be appealing for growth-focused investors. As the company innovates and expands, this trend might maintain its momentum, making it an interesting option for those looking to diversify their portfolios with a unique asset.
Currently, Build-A-Bear exhibits below-average downside deviation, with an Information Ratio of 0.04 and a Jensen Alpha of 0.06. Understanding market volatility trends can help investors time their trades effectively. During bear markets, increased volatility can affect Build-A-Bear's stock price, prompting investors to adjust their portfolios as prices fluctuate.
Our Takeaway on Build A Investment
While some other entities under the specialty retail industry are still a bit expensive, Build A may offer a potential longer-term growth to sophisticated investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to drop some or all of your Build A holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Build A.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Build A Bear Workshop. Please refer to our
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