Our latest technical analysis of Staffing 360 Solutions (NASDAQ:STAF)


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Whilst many millenniums are getting more into industrials space, it makes sense to digest Staffing 360 Solutions against current trends within the economy. As expected, Staffing 360 is starting to reaffirm its true potential as shareholders are becoming more and more confident in the future outlook. The company returns are highly-related to returns on the market. As market moves, the company is expected to follow. The appearance of sound basic indicators of the firm indicates a shorter-term price swing for shareholders of Staffing. Staffing 360 Solutions is scheduled to announce its earnings today.
Published over three months ago
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The company's average rating is Strong Buy from 1 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 Staffing 360 market sentiment investors' perception of the future value of Staffing. Let us look at a few aspects of Staffing technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Staffing 360 Solutions. In general, we focus on analyzing Staffing 360 stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Staffing 360'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 Staffing 360's intrinsic value. In addition to deriving basic predictive indicators for Staffing 360, we also check how macroeconomic factors affect Staffing 360 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 Staffing 360'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 Staffing 360 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 Staffing 360. Your research has to be compared to or analyzed against Staffing 360's peers to derive any actionable benefits. When done correctly, Staffing 360'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 Staffing 360 Solutions.

How important is Staffing 360's Liquidity

Staffing 360 financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360's total debt and its cash.

How does Staffing utilize its cash?

To perform a cash flow analysis of Staffing 360, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Staffing 360 is receiving and how much cash it distributes out in a given period. The Staffing 360 cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Staffing 360 Indicators

Staffing 360 Solutions has a beta of 1.052. Let's try to break down what Staffing's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Staffing 360 will likely underperform. The beta indicator helps investors understand whether Staffing 360 moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Staffing deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity reported the previous year's revenue of 200.82 M. Net Income was 3.01 M with profit before overhead, payroll, taxes, and interest of 34.81 M.

Staffing 360 implied volatility may change after the surge

The total risk alpha is down to 0.65 as of today. Staffing 360 Solutions exhibits very low volatility with skewness of 0.52 and kurtosis of 1.12. However, we advise investors to further study Staffing 360 Solutions technical indicators to make sure all market info is available and is reliable. Staffing 360 Solutions is a potential penny stock. Although Staffing 360 may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Staffing 360 Solutions. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Staffing instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Takeaway

Although other entities under the staffing & employment services industry are still a bit expensive, Staffing 360 may offer a potential longer-term growth to shareholders. All things considered, as of the 20th of May 2022, we believe Staffing 360 is currently undervalued. It almost mirrors the market and projects below average probability of distress in the next two years. Our up-to-date 90 days recommendation on the firm is Cautious 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 Gabriel Shpitalnik do not own shares of Staffing 360 Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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