In the world of investing, timing can be everything. Farmer Bros Co (NASDAQ: FARM) is currently showing some intriguing technical indicators that may catch the eye of potential investors. The stock has been trading around its typical price of 2.59, significantly below its 52-week high of 4.04, suggesting there could be room for growth. With a strong buy consensus from analysts and a target price averaging 6, the upside potential appears promising. However, the company has faced challenges, including a loss of 45.1M from discontinued operations, which could weigh on investor sentiment. The stock's beta of 1.791 indicates higher volatility compared to the market, making it a riskier play. With a current market value of 2.61 and a valuation real value of 3.44, the stock may be undervalued, but investors should weigh the risks carefully before diving in. Amid the buzz surrounding the food products sector, it's worth taking a closer look at Farmer Bros Co. The company is beginning to show its true potential, as investor confidence grows in its future prospects. Recent stock price movements reflect broader market trends, indicating a healthy outlook for the firm. With solid fundamentals in place, there may be a short-term price swing ahead for Farmer Bros investors. Keep an eye out, as the company is set to announce its earnings tomorrow, which could further influence its stock performance.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Farmer Bros Co. In general, sophisticated investors focus on analyzing Farmer Bros stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Farmer Bros'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 Farmer Bros's intrinsic value. In addition to deriving basic predictive indicators for Farmer Bros, many experienced traders also check how macroeconomic factors affect Farmer Bros price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
How does Farmer Stands against Peers?
Analyzing Farmer Bros 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 Farmer Bros 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
Farmer Bros Competition DetailsFarmer Bros Gross Profit
Farmer Bros Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Farmer Bros 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 Farmer Bros Gross Profit growth over the last 10 years. Please check Farmer Bros'
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
The firm has a beta of 1.4733. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Farmer Bros will likely underperform. The beta indicator helps investors understand whether Farmer Bros moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Farmer deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The small decline in market price for the last few months could raise concerns from investors as the firm is trading at a share price of
2.61 on
36,688 in volume. The company executives did not add much value to Farmer Bros investors in
August.
However, diversifying your holdings with Farmer Bros Co or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.21. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Farmer Bros partners. In the world of investing, timing is everything, and the current technical indicators for Farmer Bros Co (NASDAQ: FARM) suggest a potential opportunity. The stock is trading around a typical price of $2.59, significantly below its 52-week high of $4.04, indicating room for growth. With a price-to-sales ratio of just 0.16, the company appears undervalued relative to its revenue, which stands at $339.96 million. However, investors should be cautious, as the company has reported losses of $79.2 million and carries a debt of $48.68 million, leading to a concerning probability of bankruptcy at 33.29%. As the market navigates these mixed signals, potential buyers may want to weigh the risks against the possible upside before making a decision..
Possible October come-back of Farmer?
Farmer Bros Co's stock is showing signs of stability, with its standard deviation dropping to 3.16 today. This decrease indicates that the stock's price swings are becoming less unpredictable, which could point to a potential recovery for the company this October. Investors may find this trend promising, as it suggests a more stable performance ahead, making it an appealing choice for those looking to benefit from a rebound in the coffee and foodservice sectors. With low volatility and a skewness of 0.38, understanding these market trends can help investors time their moves effectively. In bear markets, increased volatility can pressure Farmer Bros' stock price, prompting investors to adjust their portfolios as they navigate falling prices.
Our Final Perspective on Farmer Bros
When is the right time to buy or sell Farmer Bros Co? Buying stocks such as Farmer Bros isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The bottom line, as of the 11th of September 2024, we believe that at this point, Farmer Bros is relatively risky with
below average odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our overall 90 days buy-sell recommendation on the firm is
Cautious Hold.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Farmer Bros Co. Please refer to our
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