Will SigmaTron International (USA Stocks:SGMA) price continue to rise in August?

SigmaTron International (SGMA) is showing promising signs from a technical analysis standpoint. With a Jensen Alpha of 0.47, it indicates that the stock has performed better than its expected return, considering its exposure to the market risk. This is further supported by a Beta of 0.876, suggesting that the stock is less volatile than the market, making it a potentially safer investment. Additionally, SGMA's Price Book ratio of 0.3563 is significantly low, suggesting that the stock may be undervalued. However, investors should also note the company's Downside Variance of 11.32, indicating potential for significant price drops.

Primary Takeaways

SigmaTron International has an average rating of 'Strong Sell' from analysts. This consensus is likely based on technical analysis, which typically uses price momentum, patterns, and trends derived from historical prices. The goal is to identify signals based on market sentiment and investors' perception of SigmaTron International's future value. Let's delve into some aspects of SigmaTron's technical analysis.
Published over three months ago
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Reviewed by Michael Smolkin

SigmaTron International (SGMA) operates in the Technology sector, specifically within the Electronic Components industry. As of July 17, 2024, the stock has shown a robust daily balance of power at 0.6538, indicating that the bulls are in control. The company has a Beta of 0.876, which shows less volatility compared to the market. The 50-day moving average stands at 5.06, and the day typical price is 6, reflecting an upward momentum. However, the firm's financials paint a different picture. SigmaTron recorded a net income loss of $20.6M and an operating income loss of $9.8M. Despite these losses, the company's income before tax stands at $17.2M. The stock's real value is estimated at $5.52, with potential upside and downside prices at $9.46 and $2.19, respectively. Short interest is relatively low, with shares short at 17.3K and a short percent of 0.0029. Based on these factors, SigmaTron may present a potential investment opportunity for risk-tolerant investors seeking exposure in the Technology sector. For those interested in the electronic equipment, instruments, and components sector, SigmaTron International merits closer examination. The company is beginning to demonstrate its potential as investor confidence grows in its future prospects. Much of SigmaTron's stock price movement reflects broader market trends. Strong primary indicators suggest a short-term price swing for SigmaTron investors. The company is set to announce its earnings today, and is currently outperforming other technology sectors.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of SigmaTron International. In general, sophisticated investors focus on analyzing SigmaTron International stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build SigmaTron International'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 SigmaTron International's intrinsic value. In addition to deriving basic predictive indicators for SigmaTron International, many experienced traders also check how macroeconomic factors affect SigmaTron International price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does SigmaTron Stands against Peers?

Analyzing SigmaTron International 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 SigmaTron International 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 SigmaTron International Competition Details

SigmaTron International Gross Profit

SigmaTron International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SigmaTron International 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 SigmaTron International Gross Profit growth over the last 10 years. Please check SigmaTron International's gross profit and other fundamental indicators for more details.

Closer look at SigmaTron International Standard Deviation

SigmaTron International has current Standard Deviation of 3.46. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility.
Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.

Standard Deviation

=

SQRT(V)

 = 
3.46
SQRT = Square root notation
V =   Variance of SigmaTron International returns
Let's now compare SigmaTron International Standard Deviation to its closest peers:
SGMA
IMTE
DAIO
REFR
MTEK
SGMA3.4647923076082927
IMTE7.7
DAIO2.75
REFR5.47
MTEK2.74
The proof of the pudding is in the eating, and SigmaTron International's (USA Stocks: SGMA) recent performance might just be the tasty treat investors have been craving. The electronic components manufacturer has seen its 50-day moving average rise to $5.06, signaling a potential upward trend. Despite a net income loss of $20.6M, the company's robust current ratio of 1.87X and net assets of $268.63M indicate a strong financial position. Furthermore, with a Beta of 0.88, SigmaTron offers lower volatility compared to the broader market, making it an attractive option for risk-averse investors. However, with a probability of bankruptcy at 32.94%, investors should be cautious and conduct further due diligence before diving in..

SigmaTron International implied volatility may change after the rise

SigmaTron International's semi deviation recently dropped to 2.94, suggesting a potential decrease in volatility. This statistical measure indicates that SigmaTron's price fluctuations may become less severe soon. Investors should closely monitor this, as a decrease in implied volatility could alter the stock's risk-return profile, possibly creating new investment opportunities. SigmaTron International exhibits above-average downside volatility for the chosen time frame. Understanding market volatility trends can help investors time the market. Proper use of volatility indicators allows traders to gauge SigmaTron International's stock risk against market volatility during both bullish and bearish trends.
The increased volatility associated with bear markets can directly affect SigmaTron International's stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing different financial instruments as prices decline.In conclusion, SigmaTron International (SGMA) presents a mixed bag for potential investors. With a valuation market value of 6.05 and a naive expected forecast value of 5.83, the stock seems to be fairly valued. However, the possible downside price of 2.19 suggests a significant risk. On the other hand, the possible upside price of 9.46 indicates a potential for substantial returns. Given these factors, investors should carefully consider their risk tolerance and investment objectives before deciding to invest in SigmaTron International..

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Editorial Staff

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 Raphi Shpitalnik do not own shares of SigmaTron International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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