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Should you trade your Novo Integrated (USA Stocks:NVOS) and IMAC Holdings (USA Stocks:BACK) positions after an upsurge?

October 23, 2024  By
Strike while the iron is hot. This age-old advice might resonate with investors eyeing the recent performance of Novo Integrated Sciences (NVOS) and IMAC Holdings (BACK). Both stocks have seen a notable uptick, prompting a closer look at whether it's time to secure profits. IMAC Holdings, trading on NASDAQ, operates within the healthcare sector, specifically focusing on health care equipment and supplies. Despite its recent surge, the company faces challenges, such as a negative return on equity of 3.32 and a free cash flow loss of 2.8 million. With an earnings per share estimate for the next quarter at a loss of 0.91, investors must weigh the potential for future growth against these financial hurdles. As the fiscal year draws to a close in December, the decision to hold or sell becomes increasingly pressing. Novo Integrated's shares have jumped by 4.55%, outpacing IMAC Holdings, which saw a 2.16% increase. Despite concerns among some baby boomers about the healthcare equipment and supplies sector, both IMAC Holdings and Novo Integrated present intriguing short-term investment opportunities. We'll explore the competitive strengths of each company to better understand their potential.
Published over a month ago
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Reviewed by Rifka Kats

Given IMAC Holdings' recent surge, it might be prudent to consider locking in gains, especially with its negative return on assets at -0.38 and a market capitalization of just 2.4M, which could indicate potential volatility ahead.

Main Ideas

By examining the fundamental indicators of IMAC Holdings and Novo, you can assess how market fluctuations impact their stock prices and determine if combining them in your portfolio could reduce risk. Pair trading strategies might be useful here, such as taking a long position in Novo while shorting IMAC Holdings. For more insights, explore our [pair correlation module](#) for detailed analysis. Now, let's delve into asset utilization. This metric shows how much revenue a company generates for each dollar of assets. IMAC Holdings boasts an impressive asset utilization ratio of 454.24%, meaning it earns $4.54 for every dollar of assets. This high ratio indicates that IMAC Holdings is effectively using its assets to drive revenue.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as IMAC or Novo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is IMAC Holdings's Liquidity

IMAC Holdings financial leverage refers to using borrowed capital as a funding source to finance IMAC Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IMAC Holdings 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 IMAC Holdings' 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 IMAC Holdings' 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 IMAC Holdings's total debt and its cash.

Correlation Between IMAC and Novo Integrated Sciences

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding IMAC Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Novo Integrated to your portfolio. If Novo Integrated is not perfectly correlated to IMAC Holdings it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When IMAC Holdings, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both IMAC Holdings and Novo Integrated in your portfolio? Please note if you are using this as a pair-trade strategy between IMAC Holdings and Novo Integrated, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between BACK and NVOS for more information.

IMAC Holdings Gross Profit

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

Is IMAC Holdings valued adequately by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at IMAC Holdings revenue. Based on the latest financial disclosure, IMAC Holdings reported 5.2 M of revenue.
This is 99.93% lower than that of the Health Care Equipment & Supplies sector and significantly higher than that of the Health Care industry. The revenue for all United States stocks is 99.94% higher than that of the company. As for Novo Integrated we see revenue of 12.57 M, which is much higher than that of the Health Care
IMAC5.2 Million
Sector0.0
Novo12.57 Million
5.2 M
IMAC
Sector
12.6 M
Novo
When the tide rises, it lifts all boats, but it's wise to know when to dock. Novo Integrated (NVOS) and IMAC Holdings (BACK) have recently seen impressive surges, prompting investors to consider whether it's time to secure their gains. Despite the upward momentum, IMAC Holdings shows a concerning probability of bankruptcy at 96%, coupled with a negative return on equity of 3.32. Additionally, the company's current ratio stands at 1.18, indicating a tight liquidity position. With these factors in mind, investors might want to reassess their positions and consider locking in profits before the market shifts..

Our take on today IMAC Holdings rise

IMAC Holdings experienced a significant rise today, but investors should remain cautious. The recent decrease in Value at Risk to -6.52 hints at potential volatility, suggesting the stock might soon face downward pressure. While today's increase is promising, this risk metric warns that the current momentum might not last. Investors should take this into account when assessing their positions and prepare for a possible price correction. IMAC Holdings shows above-average semi-deviation for the current time frame. Understanding market volatility trends can help investors make informed decisions.
Using volatility indicators effectively allows traders to assess IMAC Holdings' stock risk in both rising and falling markets. Increased volatility during bear markets can affect the stock price, prompting investors to adjust their portfolios as prices decline.IMAC Holdings has shown a promising leap today, sparking curiosity about its future trajectory. While the stock's recent performance is encouraging, potential investors should weigh this against the broader market context and company fundamentals. With an analyst consensus rating of "Strong Buy" and a highest estimated target price of 38.3, there is a significant upside potential. However, it's crucial to remain cautious, as the stock market can be unpredictable. Investors should consider their risk tolerance and investment goals before diving in, keeping an eye on both the potential rewards and the inherent risks..

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Editorial Staff

Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI. View Profile
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