Will Crown Cork (NYSE:CCK) continue to plunge in May?

CCK
 Stock
  

USD 82.39  2.66  3.34%   

As many millenniums are excited about consumer cyclical space, it is only fair to examine Crown Cork Seal against current market trends. As we have suggested previously, Crown Cork is beginning its plunge as traders shift to be more bearish due to the increased sector volatility. The company returns are correlated to returns on the market. As market swings, the company is expected to follow. Strong fundamental indicators of the firm may also signify signals of long-lasting gains for Crown traders. Crown Cork Seal is scheduled to announce its earnings tomorrow.
Published over three months ago
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The company's average rating is Buy from 14 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Crown Cork market sentiment investors' perception of the future value of Crown. Let us look at a few aspects of Crown technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Crown Cork Seal. In general, we focus on analyzing Crown Cork stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Crown Cork'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 Crown Cork's intrinsic value. In addition to deriving basic predictive indicators for Crown Cork, we also check how macroeconomic factors affect Crown Cork price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Crown Cork'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 Crown Cork 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 Crown Cork. Your research has to be compared to or analyzed against Crown Cork's peers to derive any actionable benefits. When done correctly, Crown Cork'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 Crown Cork Seal.

How important is Crown Cork's Liquidity

Crown Cork financial leverage refers to using borrowed capital as a funding source to finance Crown Cork Seal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Crown Cork 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 Crown Cork'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 Crown Cork, but it might be worth checking our own buy vs. sell analysis

Closer look at Crown Cork Variance

Crown Cork Seal has current Variance of 3.42. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
3.42
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Crown Cork Variance to its closest peers:
CCK
IP
BERY
KRT
MYE
CCK3.4242332010527012
IP2.82
BERY4.78
KRT8.06
MYE4.44

Our Crown analysis signifies possible reversion in May

Crown Cork recent semi variance hikes over 2.9. Crown Cork Seal has relatively low volatility with skewness of 0.12 and kurtosis of 0.24. However, we advise all investors to independently investigate Crown Cork Seal to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Crown Cork's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Crown Cork'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 stocks as prices fall.

Crown Cork Implied Volatility

Crown Cork's implied volatility exposes the market's sentiment of Crown Cork Seal stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Crown Cork's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Crown Cork stock will not fluctuate a lot when Crown Cork's options are near their expiration.

Our Final Perspective on Crown Cork

Although other companies under the packaging & containers industry are still a bit expensive, Crown Cork may offer a potential longer-term growth to traders. On the whole, as of the 24th of April 2022, we believe that at this point, Crown Cork is very steady with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. Our concluding 90 days buy-or-sell advice on the firm is Strong Hold.

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 Crown Cork Seal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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