Is Beacon Roofing (NASDAQ:BECN) a new disruptor?

BECN
 Stock
  

USD 59.47  0.47  0.80%   

It seems Beacon Roofing may not recover as fast as we have hopped for as its price went down 0.04% today. Beacon Roofing Suppl current daily volatility is 1.83 percent, with a beta of 1.07 and an alpha of 0.19 over DOW. As many institutional investors getting excited about latest market fluctuations it is important to outline Beacon Roofing based on its critical indicators. We will evaluate why recent Beacon Roofing price moves suggest a bounce in October.
Published over two months ago
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The company conducts business under Industrials sector and is part of Building Products & Equipment industry.
Beacon Roofing has a performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.0684, which signifies a somewhat significant risk relative to the market. Let's try to break down what Beacon's beta means in this case. Beacon Roofing returns are very sensitive to returns on the market. As the market goes up or down, Beacon Roofing is expected to follow. Although it is important to respect Beacon Roofing Suppl historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Beacon Roofing Suppl technical indicators, you can presently evaluate if the expected return of 0.0307% will be sustainable into the future. Beacon Roofing Suppl right now shows a risk of 1.83%. Please confirm Beacon Roofing Suppl value at risk, daily balance of power, and the relationship between the total risk alpha and expected short fall to decide if Beacon Roofing Suppl will be following its price patterns.
Investing in Beacon Roofing, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Beacon Roofing along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Beacon Roofing's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Beacon Roofing in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Beacon Roofing. Your research has to be compared to or analyzed against Beacon Roofing's peers to derive any actionable benefits. When done correctly, Beacon Roofing's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Beacon Roofing Supply.

How important is Beacon Roofing's Liquidity

Beacon Roofing financial leverage refers to using borrowed capital as a funding source to finance Beacon Roofing Supply ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Beacon Roofing 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. Please check the breakdown between Beacon Roofing's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Beacon Roofing, but it might be worth checking our own buy vs. sell analysis

Beacon Roofing Correlation with Peers

Investors in Beacon can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Beacon Roofing Supply. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Beacon Roofing and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Beacon is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Beacon for more details

Exercise or conversion by Jason Taylor of 747 shares of Beacon Roofing subject to Rule 16b-3

Legal trades by Beacon Roofing insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Beacon insider trading alert for exercise of common stock 0.01 par value by Jason Taylor, President West Division, on 15th of November 2022. This event was filed by Beacon Roofing Supply Inc with SEC on 2022-11-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Beacon Roofing valued adequately by the market?

We consider Beacon Roofing very steady. Beacon Roofing Suppl secures Sharpe Ratio (or Efficiency) of 0.0168, which signifies that the company had 0.0168% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Beacon Roofing Suppl, which you can use to evaluate the future volatility of the firm. Please confirm Beacon Roofing Suppl mean deviation of 1.51, and Risk Adjusted Performance of 0.0951 to double-check if the risk estimate we provide is consistent with the expected return of 0.0307%.

Beacon Roofing has 84 percent likelihood to hit $53 in October

Market risk adjusted performance is down to 0.14. It may entail a possible volatility slide.
As of the 25th of September, Beacon Roofing shows the mean deviation of 1.51, and Risk Adjusted Performance of 0.0951. Beacon Roofing Suppl technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for Beacon Roofing Suppl, which can be compared to its rivals. Please confirm Beacon Roofing Suppl information ratio, and the relationship between the downside deviation and value at risk to decide if Beacon Roofing Suppl is priced correctly, providing market reflects its regular price of 52.23 per share. Given that Beacon Roofing has jensen alpha of 0.1934, we suggest you to validate Beacon Roofing Suppl's prevailing market performance to make sure the company can sustain itself at a future point.

When is the right time to buy or sell Beacon Roofing Suppl? Buying stocks such as Beacon Roofing 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.
With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of Beacon or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Beacon Roofing.

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 Ellen Johnson do not own shares of Beacon Roofing Supply. Please refer to our Terms of Use for any information regarding our disclosure principles.

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