Macroaxis Stories

Will Emerald Expositions Events continue to grow in August?

July 22, 2023  By Raphi Shpitalnik
Macroaxis Story
Emerald Expositions Events, a prominent player in the Advertising Agencies industry, has been the subject of much discussion among investors. With a market value of $4.58 billion, the company has been generating a significant amount of hype, valued at $4.59 billion. However, the real value of the company is estimated to be higher, at $6.35 billion. This discrepancy has led to speculation about the potential for the stock to soar higher in August. The overall consensus among analysts is a 'Strong Buy', with the single analyst covering the stock predicting a target price of $12. This strong buy recommendation is based on the company's performance and the potential for growth in the Communication Services sector. The company's fiscal year ends in December, and it is expected to report a loss for the year. Emerald Expositions Events is a domestic company, indicating that it primarily operates within the United States. The company's strong buy recommendation and high estimated target price suggest that it could be a profitable investment. However, investors should be aware of the company's loss and consider this when making their investment decisions. Generally, our analysis concentrates on examining the price patterns of Emerald Expositions Events (USA Stocks: EEX) and their correlations with various microeconomic environments and drivers. We also utilize predictive analytics to construct daily price indicators for Emerald Expositions Events and compare them with related drivers. As this unique economic environment persists, Emerald Expositions may present investors with more surprises in the next two to three weeks. We will delve into why this could be a significantly better year for Emerald Expositions' shareholders.
Published over a year ago
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Reviewed by Michael Smolkin

The average rating for the company from one analyst is a "Strong Buy". We offer trading advice that aligns with the prevailing expert consensus on Emerald Expositions. Our sophisticated recommendation engine employs a multidimensional algorithm to analyze the company's growth potential, utilizing all available technical and fundamental data at the time. Emerald Expositions has a Net Profit Margin of 0.35 %. This suggests that the company may need to reconsider its competitive strategy, as even a minor decrease in revenue could wipe out profits, resulting in a net loss. This is significantly below average. Similarly, it has a Net Operating Margin of (0.01) %, indicating that for every $100 of revenue, it incurs a loss of $0.01.

Detailed assessment

Emerald Expositions Events, a prominent player in the Advertising Agencies industry, has been catching the eye of investors with its promising performance metrics. The company's stock, which last closed at a price of $4.58, has shown a potential upside of 4.33%, indicating a promising growth trajectory for those willing to ride the wave. The company's robust Jensen Alpha of 0.1655 further underscores its ability to generate excess returns, making it an attractive option for investors seeking to maximize their portfolio's performance. Despite a downside deviation of 3.34, the company's total risk alpha stands at 0.0157, suggesting that the stock's returns have a low correlation with the market, thereby offering a degree of protection against market volatility. While the company did report a loss in the previous fiscal year ending in December, the current market risk adjusted performance of 0.265 signals a potential turnaround, making Emerald Expositions Events a stock to watch in August.
The successful prediction of Emerald Expositions stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Emerald Expositions Events, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Emerald Expositions based on Emerald Expositions hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Emerald Expositions's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Emerald Expositions's related companies.

Use Technical Analysis to project Emerald expected Price

Emerald Expositions technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
Overlap Analysis
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Forecast Models
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Price Shifting
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Volatility Indicators
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Value Movement
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A focus of Emerald Expositions technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Emerald Expositions trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How important is Emerald Expositions's Liquidity

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

Emerald Expositions Gross Profit

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

What is driving Emerald Expositions Investor Appetite?

The current rise in Emerald Expositions short term price appreciation could raise concerns from investors as the firm is trading at a share price of 4.58 on very low momentum in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.75. The current volatility is consistent with the ongoing market swings in June 2023 as well as with Emerald Expositions unsystematic, company-specific events.

Deferred Revenue Breakdown

Emerald Expositions Deferred Revenue yearly trend continues to be fairly stable with very little volatility. Deferred Revenue will likely drop to about 143.4 M in 2023. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. Emerald Expositions Deferred Revenue is fairly stable at the moment as compared to the past year. Emerald Expositions reported Deferred Revenue of 151.2 Million in 2022
2016
2017
2018
2019
2020
2021
2022
2023
2016171.6 Million
2017192.6 Million
2018192.4 Million
2019187.3 Million
202048.6 Million
2021118.1 Million
2022151.2 Million
2023143.36 Million
Emerald Expositions Events, a prominent player in the Communication Services sector, particularly in Media, has been garnering attention in the stock market. With a market capitalization of $294.63M and a total asset value of $1.1B, the company has a strong financial standing. The company's EBITDA stands at $249.9M, underpinned by a gross profit of $210.6M and a robust net income of $130.8M. Emerald Expositions Events' financial health is further demonstrated by its current ratio of 1.28X, indicating its ability to meet short-term obligations. The company's cash flow from operations is $175.1M, with cash and equivalents amounting to $231.2M. However, the company's debt to equity ratio of 1.62% and a probability of bankruptcy at 45.90% are areas of concern. Despite a downside deviation of 3.34 and a variance of 7.54, the company's stock shows potential with a target price of $12. The company's shares outstanding are 62.87M, with 20.58% owned by institutions and 1.61% by insiders. The question remains, will Emerald Expositions Events stock soar higher in August? Given the company's financial performance and market position, it's a possibility worth considering.

Emerald may start a recoup in August

Emerald Expositions Events Inc., a premier operator of business-to-business trade shows in the United States, has experienced a significant downturn, with its peak value declining to 14.52 as of today. Despite this substantial decrease, it may be paving the way for a potential rebound. Given the company's solid business model and strategic initiatives, there's a chance that Emerald could begin to recover its losses starting in August. Investors should closely monitor this stock as it could offer a buying opportunity in the upcoming weeks. Emerald Expositions Events displays above-average downside volatility for the chosen time frame. We recommend investors to further scrutinize Emerald Expositions Events and ensure that all market timing and asset allocation strategies align with the forecast of Emerald Expositions' future alpha. Understanding varying market volatility trends often assists investors in market timing. Proper utilization of volatility indicators allows traders to assess the risk of Emerald Expositions' stock against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect Emerald Expositions' stock price, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Emerald Expositions Events (EEX) presents a compelling growth case for investors. With a current market value of 4.58, the stock is significantly undervalued compared to the analyst target price estimated value of 12. This represents a potential upside of over 160%. The strong buy consensus from analysts further strengthens the investment case. The company's real value of 6.35 also suggests that there is room for growth. Considering these factors, EEX could be a valuable addition to a growth-focused investment portfolio. .

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Emerald Expositions Events. Please refer to our Terms of Use for any information regarding our disclosure principles.

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