Margin Breakdown
0.24
Operating Profit Margin
0.2
Net Profit Margin
0.31
Pretax Profit Margin
| Pretax Profit Margin | 0.31 | |
| Operating Profit Margin | 0.24 | |
| Net Profit Margin | 0.2 | |
| Gross Profit Margin | 0.75 |
Are Karooooo (USA Stocks:KARO) investors starting to hold back?
 | By Gabriel Shpitalnik | Macroaxis Story |
Timing is everything, especially when it comes to investing. As we look at Karooooo, a player in the technology sector, the question arises: is this the right moment to consider this stock for your portfolio? With its shares trading on the NASDAQ, Karooooo has caught the eye of investors with its strong buy consensus from analysts. The company, specializing in application software, has shown promising signs with an EPS estimate of 1.25 for the current year, expected to rise to 1.45 next year. This growth potential is further supported by its 50-day moving average of 38.08, indicating a positive trend. However, with a possible downside price of 36.85, investors should weigh the risks and rewards carefully. As November unfolds, Karooooo's performance will be closely watched to see if it can capitalize on its momentum and deliver on its growth prospects. Currently, Karooooo's inventory turnover remains steady compared to last year. By October 13, 2024, the Days of Inventory on Hand is expected to increase to 1.67, while the market cap might decrease by approximately $10.1 billion. This brief overview considers Karooooo as a potential addition to your investment portfolio and offers insights into its future trajectory.
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Reviewed by Ellen Johnson
Karooooo, trading at a current price of 43.7, shows promising potential for growth as we move into November. With an EPS estimate for the current quarter at 0.35, the company is positioned to deliver solid earnings, which could attract investor interest. Additionally, the stock's Price Action Indicator of 3.7 suggests a positive momentum, indicating that Karooooo might be on the verge of a bullish trend. As part of the Software - Application industry, which is known for its dynamic growth, Karooooo could be an intriguing option for investors looking to capitalize on potential upward movement.
Important Points
Karooooo's beta is 2.27, indicating its returns are quite sensitive to market movements. This means when the market shifts, Karooooo is likely to move in the same direction, but with greater intensity. The beta value helps investors gauge how much Karooooo's stock might fluctuate compared to the overall market. A high beta suggests that while the stock could offer higher returns, it also comes with increased risk. If Karooooo's movements closely mirror the market, it doesn't significantly alter the risk profile of a portfolio, nor does it substantially boost potential returns.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Karooooo. Regardless of method or technology, 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.
Predictive Modules for Karooooo
How important is Karooooo's Liquidity
Karooooo financial leverage refers to using borrowed capital as a funding source to finance Karooooo ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Karooooo financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Karooooo's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Karooooo's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Karooooo's total debt and its cash.
Karooooo Gross Profit
Karooooo Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Karooooo 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 Karooooo Gross Profit growth over the last 10 years. Please check Karooooo's gross profit and other fundamental indicators for more details.
A Deeper Perspective
Karooooo shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Karooooo's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Karooooo's 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.
As the saying goes, "Fortune favors the bold," and for investors eyeing Karooooo, this might be the perfect time to act. With a current ratio of 1.45X, the company demonstrates a solid ability to cover its short-term liabilities, which is a reassuring sign for potential growth. Despite a modest operating margin of 0.28%, Karooooo's revenue of 4.21 billion suggests that there is substantial room for expansion in the software application industry. The stock's beta of 1.02 indicates it moves closely with the market, providing a balance of risk and stability. As November unfolds, investors should watch for any strategic moves by Karooooo that could enhance its market position and drive future growth..
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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 Gabriel Shpitalnik do not own shares of Karooooo. Please refer to our Terms of Use for any information regarding our disclosure principles.